Biden touts Ukraine-war sanctions, calls for move on Fed nominees

WASHINGTON — President Biden vowed to hold the Russian Federation accountable for its invasion of Ukraine and called on Congress to breathe new life into his economic agenda in Congress.

Delivering his first official State of the Union address on Tuesday night, Biden laid out the economic sanctions levied by the U.S. and its allies in response to the Russian military assault launched last week on Ukraine.

“Putin’s latest attack on Ukraine was premeditated and unprovoked. He rejected repeated efforts at diplomacy,” Biden said in prepared remarks. “He thought the West and NATO wouldn’t respond, and he thought he could divide us at home. Putin was wrong. We were ready.”

Bloomberg News

Beyond the historic moves launched last week and over the weekend, Biden announced the release of more than 60 million barrels of oil from reserves, half of which would come from the U.S.’s Strategic Petroleum Reserve. He also announced that the U.S. will join many of its allies in banning Russian aircraft from its airspace.

“Russia’s economy is reeling,” Biden said, “and Putin alone is to blame.”

The president also sought to revive his economic agenda among lawmakers, arguing that the stalled Build Back Better agenda could be a critical tool in the nation’s ongoing fight against high inflation.

“With all the bright spots in our economy, record job growth and higher wages, too many families are struggling to keep up with the bills. Inflation is robbing them of the gains they might otherwise feel,” Biden said.

Biden also called on the Senate to advance his nominees to fill out the Federal Reserve Board — a goal that’s been stymied so far by Republicans on the Senate Banking Committee. “So what are we waiting for? Let’s get this done,” Biden said, referring to the passage of his economic agenda. “And while you’re at it, confirm my nominees to the Federal Reserve, which plays a critical role in fighting inflation.”

But the president argued that investing in the American economy would do more than anything to bring down costs for working families, as well as introducing price controls for prescription drugs.

“Drug companies will still do very well,” Biden said. “And while we’re at it let Medicare negotiate lower prices for prescription drugs, like the [Department of Veterans Affairs] already does.”

Biden reiterated his proposal to offset the costs of his agenda by taxing America’s wealthiest citizens, touting his administration’s efforts to establish a global 15% minimum corporate tax rate.

But the president stopped short of calling for a more robust tax-reporting framework, calling only for Congress to help close tax “loopholes so the very wealthy don’t pay a lower tax rate than a teacher or a firefighter.”

On the pandemic, President Biden argued the country was on the path to normalcy, though he cautioned that “because this is a virus that mutates and spreads, we will stay on guard.”

But a key part of the federal government's early pandemic policy response loomed over one notable part of Biden’s address, when he announced that the Department of Justice would soon name “chief prosecutor for pandemic fraud.”

The Paycheck Protection Program, launched in early 2020 and putting banks and fintechs on the frontlines of saving small businesses through forgivable loans, has since been plagued by reports of loan fraud.

“In my administration, the watchdogs have been welcomed back,” Biden said. “We’re going after the criminals who stole billions in relief money meant for small businesses and millions of Americans.”