The Federal Reserve’s interest-rate hikes to bring inflation under control are starting to work, while President Joe Biden is doing everything possible to support the U.S. central bank, two administration economic advisers said.
“What we can see in the economic data is the Fed is focused on bringing down inflation,” Cecilia Rouse, chair of Biden’s council of economic advisers, said on CNN’s “State of the Union” on Sunday. “And we are starting to see signs that the actions they are taking is having an effect.”
Inflation is spreading deeper into the U.S. economy, slamming the door on hopes that Fed will dial back rate increases that threaten to tip the U.S. — and perhaps the world — into recession. The Fed has boosted its benchmark target by 3 percentage points this year to a range of 3% to 3.25%.
