Ag Sec’y Vilsack on Inflationary Pressure from ‘Inflation Reduction Act’ Spending: The Law’s ‘Paced’

On Friday’s broadcast of CNBC’s “Squawk Box,” Agriculture Secretary Tom Vilsack said in response to a question about whether Inflation Control Act spending would create inflationary pressures. It’s the pace. All this money did not suddenly appear in the economy. ”

Co-host Becky Quick said:[I]In the meantime, there’s a good chance that investments from your IRA will drive up inflation. Because it’s money that’s being pumped into the economy to create jobs for these things. But it creates some inflationary pressure. ”

Mr. Vilsack replied: “One of the things I think he misses about the IRA is the fact that it’s fast-paced. All this money doesn’t suddenly appear in the economy. Roadwork contracts take time to fix. takes time [rail] system. Improving ports takes time. Therefore, this resource will be expanded over a period of time. IRA and Infrastructure Act funds in USDA [is] It dragged on for years. So I think we’re going to start to see a more measured impact on investments in the economy. Overall, what we are seeing is a stronger, more competitive American economy. ”