US: President Biden lauds declining inflation rates; defends his economic strategies

President Joe Biden stated on Tuesday (13 December) that although there is still work to be done, the inflation rate in the United States is decreasing and things are moving in the right direction.

"It will take time to get inflation back to normal levels, I want to be clear about that. We could have setbacks when we go from unstable growth to one that is more steady. There is nothing we should take for granted "he stated.

“We learned last month that the inflation rate came down, down more than experts expected,” Biden said, speaking from the White House. “In a world where inflation is rising in double digits in many major economies around the world, inflation is coming down in America.”

Add WION as a Preferred Source

The core consumer price index, which economists consider to be the main indicator of inflation and exclude the cost of food and energy, increased just 0.2 per centin November. The monthly gain is the smallest in over a year. Core CPI expenses were up 6 per centfrom a year earlier, according to the Labor Department's report, which was issued on Tuesday.

Food and energy are included in the overall CPI, which increased by 7.1 per centover the last 12 months and 0.1 per cent from the previous month.

The Fed may be able to accomplish the desired "soft landing" and prevent a significant economic recession as a result of the easing, which shows that the Fed's interest rate rises may be having the desired effect.

The study is probably going to reassure the Fed and Jerome Powell, the head of the central bank. The Fed is anticipated to only raise interest rates by a half-point at the end of its meeting on Wednesday, as compared to the three-quarter point raises it has implemented this year.

Standing with Cecilia Rouse, Chair of the Council of Economic Advisers, and Brian Deese, Director of the National Economic Council, Biden expressed his expectation that prices will return to normal by the end of the year, if not before. But he emphasised that he was unable to forecast that.

The president admitted that many Americans are now having financial difficulties. He urged Americans to stick with their current course, saying that the good economic news proves that his economic policies are effective.

(With inputs from agencies)

WATCH WION LIVE HERE: