During an interview aired on Tuesday’s broadcast of NPR’s “All Things Considered,” Treasury Secretary Janet Yellen said that the investments in the Inflation Reduction Act “are mainly geared toward the longer-term issues around climate change,” but it will “significantly lower the cost of drugs and health insurance.” Co-host Ailsa Chang asked, “I do take your point that the new Inflation Reduction Act does a lot to promote green energy, promotes cleaner cars, tries to address healthcare needs. But it doesn’t do much to fix inflation in the short term, which is really the Federal Reserve’s job. Are you concerned that this will set people up for disappointment?” Yellen responded, “Well, look, we have to address both short-term problems and longer-term problems. And the investments in this historic legislation are mainly geared toward the longer-term issues around climate change, although the Inflation Reduction Act will significantly lower the cost of drugs and health insurance. And those are short-term gains that offset some of the other cost of living increases that Americans are experiencing. And we’re doing other things that are supportive of the Fed’s efforts. We’ve had historic releases of oil from the Strategic Petroleum Reserve, and Americans have now seen gas prices fall substantially off their peak. We are trying to also address the cost of oil here and globally by imposing, with our G7 allies, a cap on the price of Russian oil. So, we’re taking complementary actions but recognize the Federal Reserve has the primary role to play here.” Follow Ian Hanchett on Twitter @IanHanchett.
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