On Friday’s broadcast of the Fox Business Network’s “Cavuto: Coast to Coast,” Deputy Treasury Secretary Wally Adeyemo commented on the PCE inflation report and stated that inflation has dropped and they expect it to continue to do so and that food companies need to pass cost savings to consumers.
Adeyemo said, “So, it’s important to remember where we’re coming from in order to understand where we’re going. And if we were talking a year and a half ago, inflation would have been far higher, but because of the action the President’s taken and the Fed has taken, inflation has come down. Our expectation is that, over the course of the year, it will continue to come down.
Guest host Edward Lawrence then asked, “But that’s all for a small group of Americans, bringing costs down. Since President Biden came into office, food prices, for example, are up 21% and the average hourly wages are down 2.5%, that’s from January of 2021. So, now we’re seeing inflation go up again and GDP slowing. So, is this the start of stagflation?”
Adeyemo answered, “No. When you look at incomes, incomes are growing faster than inflation, and when you look at food costs, those have also stabilized. And what we know to be true is that input costs are coming down. So, one of the things the President’s called on companies to do is to pass those cost decrease…to the American people.