Agriculture Secretary Vilsack Discusses the Inflation Impact of Spending Under the ‘Inflation Reduction Act’: The Legislation’s Pace

TL/DR –

Agriculture Secretary Tom Vilsack denied that the Inflation Reduction Act (IRA) will cause inflationary pressures. This is due to the funds being spaced out over time, rather than a sudden influx of money into the economy. He believes the IRA will result in a more stable and competitive American economy.

US Agriculture Secretary Discusses Effect of IRA on Inflation

During a recent episode of CNBC’s “Squawk Box,” U.S. Agriculture Secretary Tom Vilsack addressed concerns around the potential inflationary impact of spending in the Inflation Reduction Act (IRA). His key message was that the IRA’s measured distribution of funds wouldn’t instantly flood the economy, thus mitigating immediate inflationary pressure.

Becky Quick, co-host of “Squawk Box,” raised a point that the IRA’s investments could inadvertently push inflation higher. She explained this view by stating that the flow of money into the economy to create jobs will also create some inflationary pressures.

Replying to this, Vilsack emphasized the pacing of the IRA. “It takes time to secure a contract for road construction, fix the rail system, or improve ports,” he said. “These resources will be spread out over time. The funding we’ve received from the IRA and the infrastructure law will be stretched over several years. As such, the impact of these investments on the economy will be more measured.”

He further stated that these investments will ultimately lead to a stronger and more competitive American economy.

Follow Ian Hanchett

For more on this and other related topics, follow Ian Hanchett on Twitter.

Read More US Economic News