Controlling the coronavirus pandemic is critical to countering soaring inflation in the United States. US Treasury Secretary Janet Yellen told CBS.
“It is important to realize that the cause of this inflation is the epidemic. So, if we want to reduce inflation, the most important thing is that we continue to make progress against the epidemic,” Yellen said. US consumer prices rose 6.2 percent year on year in October, the highest level since 1990. High inflation can erode household purchasing power.
Inflation is fueled by rising energy prices, as well as disruptions in global supply chains with spare parts shortages and rising wages due to staff shortages. Yellen believes that if the situation returns to normal, inflation will decline in the second half of next year.
President Joe Biden is under pressure to do something about inflation because it affects his popularity. For example, he could use the US Strategic Petroleum Stockpile to counteract rising fuel prices at the pump.
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