Janet Yellen Promises $2.8 Trillion in Spending Proposals Will ‘Push Inflation Down’

Treasury Secretary Janet Yellen argued Friday that President Joe Biden’s $2.8 trillion in proposed spending would help reduce inflation in years ahead.

“I don’t think that these investments will drive up inflation at all,” Yellen said in a morning interview with CNBC’s Sara Eisen. “It will boost the economy’s potential to grow, the economy’s supply potential, which tends to push inflation down, not up. For many American families experiencing inflation, seeing the prices of gas and other things that they buy rise, what this package will do is lower some of the most important costs, what they pay for health care, for child care. It’s anti-inflationary in that sense as well.”

Biden is pushing Congress to pass a $1 trillion infrastructure plan and an additional $1.8 trillion on his domestic agenda. Yellen’s assessment runs contrary to skepticism expressed by most economists, including Federal Reserve Chairman Jerome Powell.

“Supply-side constraints have gotten worse,” Powell said at a conference last week. “The risks are clearly now to longer and more-persistent bottlenecks, and thus to higher inflation.”

Watch above via CNBC.