White House economic advisor Cecilia Rouse told CNBC on Friday that she thinks that inflation pressures in the U.S. will ease over the next few months, and supply and demand will come to equilibrium.
She also said that the Build Back Better Act will increase economic capacity and ease inflation, and suggested that the December inflation report is likely to reflect recent price declines. Investments will not add to inflationary pressure, she stated.
In her view, food prices will go lower, as energy prices go lower. Meanwhile, Rouse acknowledged that there are challenges in the supply side of housing, which is contributing to the elevated housing costs.
The advisor also said that the Biden administration continues to review tariffs.