The announcement comes just days before the State of the Union address on Thursday, where Biden is expected to tout his commitment to lowering prices for American consumers and make his economic pitch to Congress and voters as his reelection campaign heats up.
“Even as prices have come down on important items like a gallon of milk and a dozen eggs, some corporations aren’t passing those savings on to consumers,” National Economic Council Director Lael Brainard told reporters. “Instead, some corporations are tacking on extra fees, hiding costs and sometimes even breaking the law.”
Republicans have pushed back on claims that corporate profiteering is driving inflation, contending instead that government spending is to blame.
The U.S. is one of many countries to suffer from high inflation in the wake of the pandemic, although it has fallen significantly to approximately 3 percent in recent months from a height of 9 percent in June 2022.
Brainard also called on congressional Republicans to “join this effort instead of standing in the way.”
The U.S. Chamber of Commerce criticized the strike force, which will be co-chaired by the Department of Justice and the Federal Trade Commission (FTC), as a return to government price control.
“This effort by the Biden Administration to use regulatory agencies to micromanage how private businesses set prices will have the same result: shortages, fewer choices for consumers, a weaker economy, and less jobs,” said Neil Bradley, executive vice president, chief policy officer and head of strategic advocacy at the Chamber.
Bradley also said the Chamber will be filing a lawsuit to block a Consumer Financial Protection Bureau (CFPB) rule finalized Tuesday that will cap credit card late fees at $8 for large issuers.
Banking groups also blasted the CFPB rule, warning it would lead to higher credit card interest rates and lower credit availability while only benefiting a small number of late payers.
Rob Nichols, president and CEO of the American Bankers Association, called the rule “flawed” and accused the agency of “clearly choosing to put politics over sound public policy” ahead of the State of the Union.
“The Bureau’s misguided decision to cap credit card late fees at a level far below banks’ actual costs will force card issuers to reduce credit lines, tighten standards for new accounts and raise APRs for all consumers — even those who pay on time,” Nichols said.
CFPB Director Rohit Chopra estimated the rule will save Americans around $10 billion per year, with an average savings of $220 per person.
“We have seen the junk fee era really creep across so many sectors of the economy and across government. We’re just trying to make sure that consumers and small businesses and workers are getting a fair shake wherever they go,” Chopra said.
The Hill’s Taylor Giorno has more here and here.
