WASHINGTON– Transportation Secretary and former South Bend Mayor Pete Buttigieg said a recession is “possible, but not inevitable”.
“We’re doing everything we can to strengthen the foundations of the American economy,” Buttigieg said in an interview on ABC’s This Week Sunday.
Economists fear that the Federal Reserve’s decision to raise interest rates could push the economy into a recession. Buttigieg said part of the work being done to prevent that from happening is to “expand the productive capacity” of the country. He says it has been difficult for supply to meet demand in many sectors, as demand has increased “in all areas”.
While it may be hard for you to see now, Buttigieg says President Biden is doing everything he can to “create more respite for American families.”
“That’s part of why things like the Cut Inflation Act are so important. We cannot reverse the progress that has been made,” Buttigieg said. Republicans like Indiana Sen. Todd Young have called the Inflation Reduction Act ineffective, and he thinks it doesn’t do what it says.
Buttigieg says Americans have more income because they have more jobs and better jobs. He says there is “a historically low unemployment rate”.
The current national unemployment rate is 3.6%. The inflation rate hovers around 8%. When inflation is high, you lose purchasing power. The increase in the money supply makes goods and services more expensive. This means that you are not as likely to save as much.
