In a recent update on the state of the U.S. economy, Chief White House economic adviser Lael Brainard highlighted what she deemed a "significant milestone" in the ongoing battle against inflation. The Commerce Department's latest data revealed a noteworthy decrease in a closely monitored inflation gauge, surpassing economists' expectations, with prices experiencing a month-to-month decline for the first time since April 2020.
According to CNN, during a press call on Friday, Brainard, formerly the Federal Reserve vice chair and current head of the National Economic Council under President Joe Biden, stated that the nation is concluding the year with a six-month inflation rate at 2%, aligning with the pre-pandemic benchmark. She emphasized the substantial progress made compared to a year ago, noting that inflation has receded more rapidly than even optimistic forecasts predicted.
Brainard attributed the downward trajectory of inflation, set against a backdrop of robust economic growth, as a positive indicator for achieving a "soft landing" in reining in inflation without significant job losses. She expressed confidence in the resilience of the economy, citing increased wages and wealth and a more favorable position than initially projected.
However, Brainard acknowledged potential threats to this trajectory and stressed the need for vigilance, particularly in the face of geostrategic risks. She highlighted ongoing concerns such as the Russian invasion of Ukraine affecting grain markets and drew attention to the escalating attacks by Yemen's Houthi militants on commercial ships, potentially impacting shipping lanes and fueling fears of rising inflation and oil prices.
Brainard assured that the administration is closely monitoring the situation in the Red Sea and remains in constant communication with relevant stakeholders to ensure freedom of navigation and bolster regional security. Despite the rerouting of container vessels due to security concerns, she downplayed the anticipated large-scale impact on product availability at present.
Touching on economic developments, Brainard addressed US Steel's proposed acquisition by Japan's Nippon Steel, emphasizing that such deals, given their national security and critical supply chain implications, deserve thorough scrutiny. While welcoming global investment, she underscored the administration's commitment to assessing deals that could impact key sectors of the economy.
Share This Post On
Leave a comment
You need to login to leave a comment. Log-in