Chief White House economic adviser says pace of US inflation is on target — for now

The United States has just hit a “significant milestone” in the battle to bring down inflation, President Biden’s chief economic advisor said Friday.

The United States has just hit a “significant milestone” in the battle to bring down inflation, President Joe Biden’s chief economic adviser said Friday. Earlier Friday, the Commerce Department released data showing that a closely watched inflation gauge had cooled beyond what economists were expecting and that prices fell on a month-to-month basis for the first time since April 2020. “We’re closing out the year with inflation on a six-month basis at 2% — the pre-pandemic benchmark,” said Lael Brainard, the former Federal Reserve vice chair who now heads the National Economic Council, during a call with reporters on Friday. “This is a significant milestone. If you think about where we were just a year ago, it is worth reflecting on just how much progress has been made.” She added: “Inflation has come down faster than even the more optimistic forecasts, and that has happened in the context of ongoing solid growth and strong employment.” Inflation’s continued downward trajectory in the broader context of robust economic growth fuels confidence that the US economy can achieve the proverbial “soft landing” of reining in inflation without massive job losses, Brainard noted, adding that the “landing strip has widened.” Wages and wealth have increased, and Americans and their economy are in better position than initially projected, Brainard said. Still, there remain plenty of potential threats that could endanger that path, she added.