Inflation is still running wild in the United States. In September its consumer price index increased by 0.4 percent, up 8.2 percent from a year ago. Although the figure was slightly lower compared with the 9 percent peak in June, it was still hovering near the highest levels since the early 1980s.

All this despite the Federal Reserve’s aggressive multiple rate hikes this year, which have seen interest rates surge from near-zero just seven months ago to 3 to 3.25 percent. Given the untamed inflationary pressures, it is widely believed that the Fed will announce another 0.75 percentage point hike in early November, and lift rates to 4.75 to 5 percent early next year.

The skyrocketing inflation has markedly increased the cost of living for US households, and risks pushing the US economy into recession. The fact that the Fed’s actions have basically failed to bring runaway prices under control, let alone to achieve its goal of 2 percent inflation, points to Washington’s monetary policy missing the target.

Which comes as no surprise. This is because the ongoing round of inflation has been driven by a variety of factors that require far more solutions than mere rate hikes.

Corporate profiteering, a surge in consumer spending fueled by stimulus checks, and global supply chain bottlenecks during the COVID-19 pandemic have all been cited as reasons behind the current inflation. The Russia-Ukraine conflict has further disrupted energy and food supplies globally, and it is another factor pushing prices sky-high.

Moreover, it is an undeniable fact that the once booming Sino-US trade was a major reason for the low inflation the US enjoyed for many years. US businesses and consumers are currently bearing most of the costs from the elevated tariffs imposed after the start of the US-China trade war more than four years ago. It is believed that removing the tariffs could save an average US household around $800 a year, underscoring the need for the Joe Biden administration to end the trade war initiated by his predecessor.

Yet rather than cancelling all extra tariffs on Chinese goods, which serves the best interests of US businesses and consumers, the Biden administration has imposed new sanctions on China. For example, it recently banned imports of certain materials from China that are used in solar panels, which has further disrupted solar panel supply chains and raised solar panel prices globally.

For the good of itself and the rest of the world, Washington should cooperate with other major economies to repair the ruptured global industry and supply chains, so as to bring down the soaring inflation.