Las Vegas, Nevada – Secretary of the Treasury Janet L. Yellen delivered a significant address at the IBEW 357 Training Center in Las Vegas, Nevada, discussing the impactful economic recovery driven by President Biden’s policies and the transformative effects of the Inflation Reduction Act. The following excerpts are from the Secretary’s prepared remarks:
Addressing the remarkable strength of the labor market despite the battle against inflation, Yellen stated, “Last July, I gave a speech about the remarkable resilience of the American economy and workers in the face of global challenges. There were many who questioned whether that could last. But that’s precisely what we’ve seen over the past year, even as we remain attuned to the significant risks ahead. Annual headline inflation is now nearly 6 percentage points below its June 2022 peak. Today, overall inflation and the unemployment rate both sit below 4 percent. And our economy continues to expand.”
Highlighting the improvements in workers’ conditions, Yellen emphasized, “Workers are better off than they were last year. Real average hourly earnings have grown over the past year – meaning that wage gains are outpacing inflation. In fact – in 9 out of 14 major sectors – real wages are growing faster than they were in the decade before the pandemic. This has had a sizable impact on reducing inequality: one working paper estimates that wage gains for lower-income workers in recent years have reversed a quarter of the wage inequality that had accumulated over the past 40 years.”
Yellen affirmed the Administration’s commitment to lowering prices for Americans and monitoring global developments that may affect prices and growth. She expressed her optimism for continued inflation reduction while maintaining a strong labor market, acknowledging the possibility of challenges but relying on evidence suggesting that progress is being made. Yellen mentioned that consumer sentiment is at its highest level in almost two years and expected the gains achieved in recent years to provide resilience even in the face of potential economic cooling.
For a comprehensive understanding of Secretary Yellen’s remarks and insights into the ongoing economic trajectory, refer to the official statements provided by the U.S. Department of the Treasury.