Turning the Corner: White House Adviser Lael Brainard on U.S. Inflation and Housing Challenges

White House economic adviser Lael Brainard highlighted that inflation in the U.S. is nearing pre-pandemic levels and emphasized the importance of supporting the labor market and growth. She addressed the challenges of housing affordability and discussed the potential impacts of lower mortgage rates and commercial real estate on the economy.

Top White House economic adviser Lael Brainard announced that the U.S. economy is making strides in curbing inflation, shifting focus to preserving jobs and boosting growth. Speaking at a Council on Foreign Relations event, Brainard emphasized that inflation is nearing pre-pandemic levels without significant job losses or growth slowdowns.

Brainard, now head of the White House National Economic Council, stated the Biden administration's commitment to fostering economic growth and labor market stability. She acknowledged potential future supply shocks but noted that measures to diversify supply chains have increased resilience across nations and businesses.

On housing, Brainard identified affordability as a critical challenge, stressing the need for increased housing supply. She pointed out that lower mortgage rates could facilitate housing development, easing the housing crunch. Additionally, she suggested converting vacant office spaces could alleviate commercial real estate pressures, although high conversion costs remain a hurdle.

(With inputs from agencies.)