The consumer prices has increased by 7% over the past 12 months to the end of December, as it considers as the largest year-on-year growth since June 1982. Meanwhile, the US Department of Labor said that the consumer price index rose 0.5% during the past month, after rising 0.8%, in November. According to analysts, the inflation in the United States explains the rapid shift in the Federal Reserve"s approach to raise interest rates faster than expected. Thee US President Joe Biden emphasized that they are making progress in order to reduce prices, adding that they have more work to do to prevent price hikes escalation in the United States. From his side, Chair Jerome Powell said during a hearing of the Senate Banking Committee "The high inflation is a severe threat to the achievement of maximum employment". Powell also confirmed in a statement published by the US Federal Reserve that "As the pandemic arrived, our immediate challenge was to stave off a full-scale depression, which would require swift and strong policy actions from across government." It is noteworthy that the Biden administration earlier has returned with the Federal Reserve and acknowledged that inflation will continue more than it expected, after confirming that the inflation is "temporary" in 2020 due to COVID-19 epidemic.