With inflation rising to in the last few months, many are turning to lawmakers to see if their dollar is not stretching to buy as many diapers or bacon.
Treasury Secretary Janet Yellen expresses appreciation for Joseph Biden's economic strategy in the last year.
Why Are Things So Expensive?
"I anticipate inflation to remain above 2% throughout the entire year, including 12-month fluctuations," Yellen said at CNBC's "Closing Bell.
"If we are successful in controlling the epidemic, we're expected to fall over the course of the year, and we'll return to normal levels by the end of the year around 2%."
Yellen has said that supply chain disruption and high levels of unemployment are already being blamed for decreased inflation as omicron cases continue.
The fact that the labor market has been rebounding dramatically the country added 6.4 million jobs in 2021 is driving the trend.
"I think it must be considered as a remarkable success that unemployment has dropped the most in a year in American history," Yellen said.
Biden's Build Back Better Program, a measure that would extend to social welfare and Covid-19 relief, will improve it even further. Similar comments have been made when Biden himself on rising prices.
What Can The Federal Reserve Do In All this?
"And we'll," says Yellen. "Inflation has grown more than most economists, including me.
When inflation is high, the common approach is for the Federal Reserve to increase borrowing rates, according to Yellen. It's up to the Fed, currently headed by Jerome Powell, to "recalibrate" the equation and keep prices at bay whichever way it can.
"We have been hit by a pandemic that has created economic challenges that none of us predicted, and it is our hope and intention to reduce inflation to levels that are consistent with the Fed's interpretation of price stability," Yellen said.