Controlling Inflation

Inflation is generally controlled by the Central Bank and/or the government. The main policy used is monetary policy (changing interest rates). 

However, in theory, there are a variety of tools to control inflation including:

• Monetary policy – Higher interest rates reduce demand in the economy, leading to lower economic growth and lower inflation.
• Control of money supply – Monetarists argue there is a close link between the money supply and inflation, therefore controlling money supply can control inflation.
• Supply-side policies – policies to increase the competitiveness and efficiency of the economy, putting downward pressure on long-term costs.
• Fiscal policy – a higher rate of income tax could reduce spending, demand and inflationary pressures.
• Wage/price controls – trying to control wages and prices could, in theory, help to reduce inflationary pressures. However, they are rarely used because they are not usually effective.

SOURCE:  EconomicsHelp.org

BUT...

the current administration must be willing to admit that there is a problem in order to fix the problem...  and if, the administration refuses to admit that there is a problem...  inflation will continue to worsen...

HOWEVER...

the Federal Reserve System that operates outside of the control of the President and their administration can increase interest rates to reduce the supply of money in the marketplace as it tries to ease inflation.

UNFORTUNATELY...

if the Federal Reserve System does raise interest rates, there is a good possibility that this will send the economy into a recession...  a recession will cause layoffs and a corresponding reduction of economic growth.

It still continues to amaze me that our elected political leaders make decisions that put them into a category of being ECONOMICALLY STUPID...