Treasury Secretary Janet Yellen promotes strong economy in Detroit visit
(CBS DETROIT) – U.S. Treasury Secretary Janet Yellen touted a strong economy and believes inflation is returning to normal levels while making several stops across Detroit on Wednesday, including NewLab at Michigan Central.
During her visit, Yellen became the latest American to ride along the nation's first wireless-charging roadway that runs along NewLab.
It's the creation of Electreon –one of the more than 60 startups operating out of NewLab.
"In terms of encouraging activities like this, the Inflation Reduction Act is the single most important piece of legislation that's ever been passed in the United States to encourage clean energy development," Yellen told reporters.
The Inflation Reduction Act that Yellen praised is one of the initiatives the Biden administration has carried out to bolster the economy.
While she acknowledges prices of goods and services are high due to inflation.
"It's also the case that wages have been increasing quite rapidly and most rapidly at the lowest wage levels. And certainly over the last year, and in total, if we look back to before the pandemic, living standards are rising," Yellen said.
Her remarks a day after data shows the consumer price index was higher than expected, but during a discussion with Governor Gretchen Whitmer at the Detroit Economic Club, Yellen said the country has seen a two-thirds decline in inflation, and prices at the pump are dropping.
"I think it is a tremendous mistake to focus on minor fluctuations and to have failed to see the longer-term and bigger trends. And the trend here is that inflation is moving decisively down," Yellen said.
During her tour at Newlab, she said the Biden administration is working with Congress to try to lower costs that are burdens on households and has this message for those households.
"As inflation normalizes at a very low level, and wages continue increasing. American households will feel more secure. This episode is behind them, and they'll be able to see they're getting ahead," Yellen said.