Yellen promotes Biden economic agenda in Detroit visit

Detroit — U.S. Treasury Secretary Janet Yellen touted the Biden administration’s economic initiatives Wednesday during a visit to Detroit, pointing to healthy job growth and moderating inflation.

Despite a “burst of inflation,” economic growth is strong, wages are up and inflation is “coming back down to normal levels where it’s not a issue to most people,” Yellen said at an event with Gov. Gretchen Whitmer hosted by the Detroit Economic Club at Huntington Place downtown.

“I think the statistic I find useful to summarize how things have gone is the median worker in the United Sates, if you compare today to 2019, the typical worker can buy exactly the same basket of goods and services … and they have $1,400 left over on top of that to spend or save,” she said.

According to federal data released Tuesday, the consumer price index rose 0.3% from December to January, up from a 0.2% increase the previous month. Compared with a year ago, prices are up 3.1%, above the Federal Reserve Board’s 2% target.

Yellen cited the Inflation Reduction Act and American Rescue Plan — which allotted $6.5 billion to Michigan — as key factors in “lowering health care costs for American families, supporting small businesses, and creating economic opportunity across the country,” according to a release.

“I see Michigan as a state positioned to benefit from that legislation,” Yellen told the audience.

However, she said “there are serious problems that policymakers need to address to support middle class families so that they can enjoy better lives and the Biden administration is focused on that.”

Yellen’s visit to Detroit followed stops Tuesday in Pennsylvania, another swing state that’s crucial to President Joe Biden’s reelection chances this fall. Republicans have targeted Biden over inflation that reached 9.1% in 2022 and has remained stubbornly high.

U.S. Rep. John Moolenaar, R-Caledonia, blasted the president and Yellen in a statement Wednesday.

“Ever since Secretary Yellen and President Biden took office, their policies have hurt Michigan seniors, families, and small businesses with higher prices, record inflation, and burdensome regulations,” Moolenaar said. “Unfortunately, nothing Secretary Yellen says today in Michigan will make life easier for Michigan residents who are paying more for everything they buy. Secretary Yellen misled Americans when she said inflation would be transitory and disappear quickly. She has no credibility on the economy now.”

mjohnson@detroitnews.com

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