During an interview on MSNBC on Tuesday, Council of Economic Advisers Chair Cecilia Rouse stated that the Federal Reserve’s monetary policy “is starting to slow down the economy” and that it has “been in that gentle way that we would hope.”
Rouse said, “We completely understand the struggle that inflation poses, which is why the president really is focused on that. It’s why he is giving the Federal Reserve the independence and the latitude to exercise its monetary policy tools to bring inflation under control. He is also focused on getting as much oil onto the market as possible. That is what will bring down the price of oil. It is priced on a global market. It’s why he has done historic releases from the Strategic Petroleum Reserve in partnership with partners and allies as well. So, we have releases there. It’s why he was in the Middle East to celebrate OPEC-Plus’ decision to increase production and encourage them to produce even more. He has been working with refiners. Secretary Granholm has been working with refiners to ask what can we do to help you increase your capacity to refine more product. So, we’re — he is working to get more product on the market. That is how prices come down. The war in Ukraine is definitely a challenge. We are trying to address food supplies so, again, we can bring down the global prices there. So, this — we all expect that these factors will work themselves out. I appreciate that we want it to be sooner than later, but we are already seeing signs that the Federal Reserve’s monetary policymaking is starting to slow down the economy. So far it’s been in that gentle way that we would hope. But, let’s face it, we’re getting a lot of data this week, as you highlighted, and we will learn even more about where we stand.”
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