Wally Adeyemo at CNBC’s Delivering Alpha,Sept 28, 2022.
Scott Mlyn|CNBC
Deputy Treasury Secretary Wally Adeyemo stated Wednesday that the Biden administration is doing whatever it can to fight inflation prevent an economic downturn.
Adeyemo blamed the twin shocks of the Covid-19 pandemic and the war in Ukraine for record inflation rates in the U.S., however stated the American economy is still strong in spite of the danger of a financial decline.
“Consumer confidence is still high. Consumer and corporate balance sheets are healthy. We have a great deal of momentum in the labor market in which we get more than 300,000 jobs over the last three months on average,” Adeyemo informed CNBC’s Ylan Mui at the Delivering Alpha Investing Summit in New York City.
He included that the administration is working to lower inflation through a series of steps described in the Inflation Reduction Act, the CHIPS Act and the bipartisan facilities law.
“All three are going to help expand the productive capacity of the U.S. economy which will mean that while we’re bringing down inflation, we’re also expanding supply in the economy,” Adeyemo stated. “That will give us the ability to make sure that we have sustainable growth as we come out of this high inflation period.”
Republicans have actually slammed the administration’s costs, stating it will increase the U.S. deficit as rate of interest increase.
“Not all spending is the same,” Adeyemo stated. “The spending (in the) Inflation Reduction Act is spent over time, and it’s spending that’s going to help expand the productive capacity of the economy,” he stated.
He stated financial investments that make the economy more efficient, will cause “better growth outcomes over time.”
