Ag Sec’y Vilsack Discusses Inflation Impact of ‘Inflation Reduction Act’

TL/DR –

The Inflation Reduction Act (IRA) will not cause inflationary pressure because it is paced and will not suddenly flood the economy with money, according to US Agriculture Secretary Tom Vilsack. Vilsack argued that the investments from the IRA would be released over a period of years and would have a measured impact on the economy. He further stated that the result of this process would be a stronger and more competitive American economy.

Will the Inflation Reduction Act Add Inflationary Pressure?

In a recent interview on CNBC’s “Squawk Box,” Agriculture Secretary Tom Vilsack discussed the potential inflationary impact of the Inflation Reduction Act (IRA). He dismissed concerns that the spending from the IRA would create inflationary pressure.

Co-host Becky Quick voiced concerns that the IRA’s investments could potentially push inflation higher, due to the influx of money creating jobs and thereby adding inflationary pressures.

However, Vilsack countered that the IRA’s spending is paced and won’t result in an immediate surge of money into the economy. “It takes time to get a contract for road construction. It takes time to fix the [rail] system. It takes time to improve ports. So, this resource is going to be stretched out over a period of time,” Vilsack explained.

He further emphasized that USDA funding from the IRA and the infrastructure law would be spread out over several years, suggesting a more measured impact on investment in the economy. Ultimately, Vilsack expressed confidence in a stronger, more competitive American economy as a result of these measures.

Follow the discussion and more updates from Ian Hanchett on Twitter.

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