Yellen says Inflation Reduction Act, CHIPS Act rescue U.S. economy
US Treasury Secretary Janet Yellen tours the Ford Motor Company’s Rouge Electric Vehicle Center that builds the all-electric Ford F-150 Lightning with Linda Zhang,(R), chief engineer for the vehicle, before delivering an economic speech in Dearborn, Michigan, on September 8, 2022.
Jeff Kowalsky | AFP | Getty Images
Treasury Secretary Janet Yellen praised Biden administration’s economic policies Thursday during a speech at a Ford Motor Company electric vehicle plant in Michigan.
Yellen, who spoke following a tour of the Rouge Electric Vehicle Center in Dearborn, touted the Democrat-led Inflation Reduction Act, the bipartisan infrastructure law and the CHIPS and Science Act as boons to the manufacturing sector and job growth.
Her speech came as Democrats aim to highlight their economic successes ahead of the midterm elections in November, which will determine whether Republicans can retake one or both chambers of Congress. President Joe Biden will travel to Ohio on Friday to promote the opening of an Intel semiconductor manufacturing facility.
Many of the administration’s policies conform to Yellen’s so-called Modern Supply Side Economics framework. Before the pandemic, she said, higher inequality was accompanied by slower economic growth.
“And now with an economy at full employment, we are uniquely suited for a supply-side expansion that delivers sustainable growth and reduces inequality,” Yellen said.
She also noted the Biden administration’s stabilization efforts “will put the United States back to full employment in record time” after the pandemic, declining labor force participation and the war in Ukraine weighed down the U.S. economy.
“Taken together, the bipartisan infrastructure law, the Chips Act, and the Inflation Reduction Act authorized among the most significant investments our country has ever made,” Yellen said. “I believe firmly, they will help us achieve stable sustainable growth, and they’ll move us toward a fairer and more resilient economy.”
American Rescue Plan
Yellen attributed an economic turnaround during the pandemic to one of President Joe Biden’s political priorities upon entering the White House.
“Due to the American Rescue Plan and our vaccination campaign, the United States experienced the fastest pace of job creation in our history,” she said. “Household balance sheets are strong, and businesses continue to invest.”
Biden signed the $1.9 trillion pandemic relief package into law in March 2021, authorizing payments of up to $1,400 for most Americans, extending $300 per week in unemployment insurance and expanding the child tax credit. The package also included $20 billion for Covid-19 vaccinations and millions in rental assistance.
The unemployment rate returned to its pre-pandemic level in July and tied for the lowest level since 1969 for every demographic group but African Americans, according to data from the Bureau of Labor Statistics.
During her visit, the Treasury secretary also visited small businesses that are recipients…
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