While inflation has fallen more than 60% from its peak, today’s report reinforces the importance of our ongoing work to bring costs down.
President Biden is fighting to lower the biggest bills families face. The President has secured legislation to lower costs for health care, prescription drugs, and insulin.
He has called on Congress to pass his plan to lower housing costs by building one million new homes. And he is banning hidden junk fees and calling on corporations with record profits to pass their savings on to consumers.
That’s a sharp contrast with Congressional Republicans, who are fighting for measures that raise costs for health care, housing, and utility bills while cutting taxes for the wealthiest Americans and biggest corporations.
April 26 2024 White House Washington, DC
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AI: Political Rhetoric Overshadows Realistic Assessment of Inflation in Brainard’s Statement
Lael Brainard’s statement on the March PCE report highlights the progress made in reducing inflation, but also emphasizes the ongoing work needed to bring costs down for American families[1][5]. While inflation has fallen significantly from its peak, it remains elevated, as evidenced by the PCE price index accelerating to an annual rate of 2.7% in March[3].
The statement praises President Biden’s efforts to lower costs for healthcare, prescription drugs, insulin, and housing[5]. However, it fails to acknowledge the role of the Federal Reserve’s interest rate hikes in bringing down inflation[2][4]. The statement also lacks specific details on how the administration plans to further reduce inflation and its impact on consumer prices.
Critics may argue that the statement is more political rhetoric than a substantive analysis of the economic challenges facing the country. It does not address the potential risks to the economic outlook, such as the possibility of further shocks from the war in Ukraine or the implications of China’s exit from zero-COVID policies[4]. Additionally, the statement does not mention the potential consequences of persistently high inflation, such as the risk of a recession or the impact on the Fed’s ability to achieve its dual mandate of price stability and maximum employment[2].
In summary, while the statement highlights the administration’s efforts to lower costs for families, it lacks a comprehensive analysis of the current economic situation and the challenges ahead. A more balanced and data-driven approach would provide a clearer picture of the progress made and the work still needed to achieve sustainable price stability and economic growth.
Citations:
1. https://www.cnn.com/2023/12/22/economy/lael-brainard-inflation-pce/index.html
[2] https://www.federalreserve.gov/newsevents/speech/brainard20220405a.htm
[3] https://finance.yahoo.com/news/us-feds-favored-inflation-measure-135233374.html
[4] https://www.federalreserve.gov/newsevents/speech/brainard20230119a.htm
[5] https://www.whitehouse.gov/briefing-room/statements-releases/2024/03/28/statement-from-national-economic-advisor-lael-brainard-on-fourth-quarter-2023-gdp-and-march-consumer-sentiment/
Source: Midtown Tribune news – WH.gov