President Joe BidenThursday’s announcement focused on wage growth and projections for tapering inflation, even though a recent report found that prices continue to rise at the fastest rate in over 40 years.

Biden stated in a press statement that “even though today’s report seems elevated,” forecasters still project inflation decreasing substantially by 2022. We were able to see positive real wage growth and moderate auto price increases last month. These have accounted for about 25% of the headline inflation in the past year.

He added that “We will continue our fight to reduce costs in areas where families and workers have been disadvantaged for many decades, including prescription drugs and child care as well as elder care and energy costs.”

Two hours after Labor Department published a report indicating that U.S. consumers face high prices, the president made his remarks. rose 7.5% in the 12 months through JanuaryThis is the fastest annualized rate of change since 1982. CPI rose 6.6%, which is lower than the estimated 5.9%. Inflation core rose to its highest level since August 1982.

As rising gas prices and groceries costs have taken a toll on Americans’ pocketbooks, inflation has been one of the chief economic challenges facing the Obama administration in recent months. The inflation that occurs without a proportional increase in wages reduces consumer purchasing power, leaving households with lower real earnings.

The White House is able to control price rises by tapping into the strategic petroleum reserve and shoring up U.S. supply chain systems, encouraging workers to get back to work, as well as encouraging them to do so as quickly as possible.

Although investments in American infrastructure, which are supported by Biden’s administration, may reduce prices long term and help to keep them down in the short term. The White House does not have any options in the immediate future to control prices. Biden, Treasury Secretary Janet Yellen and others have stated in recent weeks they are happy with the Federal Reserve’s decision to raise interest rates and tighten monetary policy to control inflation.

Congress gives the Fed authority to set interest rates so that there is maximum employment and stability in prices. To curb spending, the central bank can increase borrowing costs to the entire economy if it considers the economy too hot.

Market analysts predict that the Fed will raise interest rates at its March meeting, and keep doing so until 2022.

Biden stated that the Federal Reserve had provided exceptional support over the past year and a quarter during the crisis. “Given the strength of our economy and pace of recent price increases, it’s appropriate — as Fed Chairman Powell has indicated — to recalibrate the support that is now necessary.”

Yellen echoed her boss’s sentiments a day after.

“I expect inflation throughout much of the year – 12-month changes – to remain above 2%,” she said at the time. But if the pandemic is controlled, I believe inflation will fall over the year. It should then revert back to around 2% at the end.