Biden Argues Deficit Reduction, Will Help Reduce Inflation, as Fed Hikes Interest Rates.br Biden Argues Deficit Reduction, Will Help Reduce Inflation, as Fed Hikes Interest Rates.br On May 4, President Joe Biden announced that for the first time in six years, the federal government will pay down the national debt this quarter. .br ABC News reports the announcement comes on the same day that the Federal Reserve implemented another interest rate hike, the latest attempt to manage record inflation.br Bringing down the deficit is one br way to ease inflationary pressures in an br economy, where a consequence of a war br and gas prices and oil, food, and it all – br it's just a different world right this br moment because of Ukraine and Russia, Joe Biden, President of the United States, via ABC.br ABC points out that inflation presents a major br political problem for Biden and his Democratic br party as midterm elections rapidly approach.br The bottom line is the deficit went up br every year under my predecessor, before br the pandemic and during the pandemic, br and it's gone down both years since br I have been here. Period. There are the facts, Joe Biden, President of the United States, via ABC.br The bottom line is the deficit went up br every year under my predecessor, before br the pandemic and during the pandemic, br and it's gone down both years since br I have been here. Period. There are the facts, Joe Biden, President of the United States, via ABC.br Earlier this week, the Treasury Department updated br its estimates to project that the United States' br deficit will shrink by over $1.5 trillion in 2022. .br Earlier this week, the Treasury Department updated br its estimates to project that the United States' br deficit will shrink by over $1.5 trillion in 2022. .br Looking ahead, I plan to reduce br the deficit even more which will help br reduce inflationary measures andbr lower the cost for everyone's families, Joe Biden, President of the United States, via ABC.br Meanwhile, the Federal Reserve has raised short-term interest rates by half a percentage point in an effort to manage inflation. .br ABC reports that the nation's deficit br has grown to about $3 trillion br as a result of the pandemic. .br Earlier this year, br the United States' gross national debt br surpassed $30 trillion for the first time.