US President Joe Biden believes there is little point in worrying about rising inflation at the moment. He is confident that it can be kept under control.
"The good news is the economy is recovering to a large extent… A solid number of experts, including those from Wall Street, believe the uncontrollable nature of inflation to be highly doubtful in the long run," Biden said. He also added that the country might face short-term inflation.
Biden admitted that the temporary rise in inflation could be a serious problem for the country. However, growing inflation also indicates that the pace of economic recovery from the coronavirus-driven crisis is quite fast. The President unveiled a list of US infrastructure modernization measures that would eventually reduce inflation. Janet Yellen, the US Secretary of the Treasury, is also confident that the inflation rate will be high during the next few months but in the medium term, it will return to normal targets.
The Fed expects this year’s inflation to be 3.4%. Next year’s inflation is expected to be 2.1% and in 2023 it may decline below 2.2%.
