The Biden administration expects inflation to become more moderate over the coming year as a result of the fact that the factors causing the increase in prices will ease, White House Council of Economic Advisers Chair Cecilia Rouse said on Thursday
WASHINGTON (Pakistan Point News / Sputnik - 17th February, 2022) The Biden administration expects inflation to become more moderate over the coming year as a result of the fact that the factors causing the increase in prices will ease, White House Council of Economic Advisers Chair Cecilia Rouse said on Thursday.
"We expect inflation to moderate over the coming year because we believe that factors that have been causing higher inflation will begin to ease as COVI-19 cases gradually decrease," Rouse said during the hearing on the state of the US economy at the Senate Committee on Banking, Housing and Urban Affairs.
Rouse underscored the importance of increasing supply as one of the most important steps needed to improve the situation concerning inflation.
"Producers have been increasing the prices because of the constrained supply, so we need to ensure that our ports are strong, that we have a robust investment in our infrastructure," she said.
Rouse assured lawmakers that the Biden administration is doing everything it can to address the issue, and in that context acknowledged the importance of competition.
"The President (Joe Biden) is very focused on the concern of price increases. He understands that the prices have gone up, and that is a real challenge for families," Rouse said.
The US economy grew by 5.7 percent in 2021, the fastest since 1984, from a 3.5% contraction in 2020 caused by the pandemic. But inflation is growing even faster, with the Consumer Price Index increasing 7.5%, - the most since 1982.
