Earlier in the day, the US Labor Department reported that the US Consumer Price Index (CPI) rose by 7% in the year to December, marking the highest increase since 1982. Deese said tackling the prices increase will require the expansion of the US productive capacity economy more cheaply across the country. The US economy shrank by 3.5% in 2020 due to coronavirus pandemic measures. The Federal Reserve has projected a 4% growth for 2022, but the main problem it faces is rising inflation, which is running at 40-year highs amid soaring prices.
In a news conference, US National Economic Council Director Brian Deese stated that the US is well-positioned to combat price increases head-on. The 13th of January in Washington, D.C. In a news conference, US National Economic Council Director Brian Deese stated that the US is well-positioned to combat price increases head-on. “We are well-positioned to confront the difficulties of prices and costs head-on, given the unique strength of the United States’ economic recovery, overall growth, and labour market,” Deese said on Wednesday.
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National Economic Council Director Brian Deese attempted to paint a rosy picture of the U.S. economy on Wednesday, on the same day the Labor Department announced inflation increased at the fastest rate in 40 years in 2021. Deese said during a White House press briefing that the U.S. is in a “uniquely strong economic position” despite Americans encountering rising prices and empty shelves in stores across the country.
He instead crafted a story in which the U.S. had excelled economically last year, noting that it experienced the largest decline in unemployment, most jobs created and the strongest economic growth in nearly 40 years. However, he failed to acknowledge that those figures come in the wake of record destruction on the economy brought on by the early days of the Covid-19 pandemic.
Earlier, consumers who were already snapping up goods such as TVs and appliances while stuck at home during the health crisis began dining out and traveling more. Many were ready to splurge after they built up more than USD 2.5 trillion in additional savings from federal stimulus checks and enhanced unemployment benefits, as well as cutting back during the lockdowns. At his confirmation hearing for a second term Wednesday, Federal Reserve Chair Jerome Powell told US lawmakers the central bank is prepared to raise interest rates more rapidly than planned to contain inflation. The Fed already has accelerated the phaseout of its bond-buying stimulus, a move that would clear the way for interest rate hikes as early as March, as noted by USA Today.
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