White House economic adviser Cecilia Rouse on Sunday defended the Biden administration’s limited progress in reducing inflation, responding to comments by President Joe Biden last week that attempted to put a positive spin on the high rate .
“We’re starting to see signs that the actions they’re taking are having an effect,” Rouse said of the Federal Reserve, which she says is focused on reducing inflation.
Rouse pointed to last month’s data that employers are posting fewer job openings and the housing market is shrinking during an interview with CNN’s Dana Bash on “State of the Union.”
“So we are starting to see signs that our scorching economy is starting to cool. And so we know that because of that strength … we’re in a better position than most other countries for the Fed to achieve its goals,” Rouse said.
Data from the Bureau of Labor Statistics released earlier this week showed annual inflation rose 8.2% in September, a slower rise than the 8.3% rise seen in August. Economists had expected the pace of price increases to slow to 8.1% last month, CNN reported last week. On a month-to-month basis, overall consumer prices rose 0.4% from August.
Asked by Bash about the high food prices Americans are paying, Rouse pointed to the ability of the Inflation Reduction Act to lower prescription drug costs for Americans — though she acknowledged it doesn’t. does nothing for food prices.
But pushed when it would start to reduce inflation, Rouse said: ‘Many parts of the bill will start to come into effect next year.’
Rouse spoke of energy tax credits in the law as having one of the most immediate tangible impacts on cost reduction.
“There are energy tax credits to help people weatherproof their homes and reduce other forms of energy costs. So we’re working to help make that transition to clean energy in a way that lowers energy costs for families,” Rouse said.
” It’s hard. there is no doubt. It’s a challenge,” she added of reducing inflation in general.