U.S. Treasury Secretary Janet Yellen endorsed the progress of the energy transition during her speech in Las Vegas. She also denounced the concentration of supply chains dominated by a few nations.
Concern for the concentration of clean energy supply chains.
“We remain concerned about the risks of over-concentration in clean energy supply chains”, said Ms Yellen: “the production of essential equipment is concentrated in the hands of a handful of countries”.
She calls for “a diversified and strengthened global supply chain that reduces bottlenecks and disruption risks, and protects our economic security”.
In this case, the gradual implementation of the major climate plan (IRA) voted for just over a year ago “has brought some of the production” back to American soil.
Reinforced energy transition and welcomed economic benefits.
“Beyond our shores, we are also working to strengthen the energy transition in other countries, which may lead to greater demand for American technologies produced by American workers,” added Janet Yellen.
More broadly, the Treasury Secretary stressed “the progress made not only in terms of the fight against global warming, but also the economic benefits” of the law signed a year ago.
The White House presents this law as part of the “Bidenomics” program. These reforms are part of a coordinated economic initiative launched recently.
Among the consequences of these measures, according to Mrs. Yellen, is an unemployment rate that remains historically low, despite the sharp rise in rates implemented by the Federal Reserve (Fed) for over a year to fight inflation:
“Annual inflation is now six percentage points below its peak in June 2022. Inflation and unemployment are now both below 4% and our economy continues to grow,” Yellen enthused.
Janet Yellen discusses inflation and the labor market in good health.
“I remain convinced that it is possible to continue to reduce inflation while maintaining a healthy labor market,” she added.
The Fed raised rates from 5.25% to 5.50% over 18 months to counter inflation exceeding 9% in June 2022.
This increase is designed to prevent inflation from becoming permanently anchored. In July, the CPI index recorded annual inflation of 3.2%, influencing pensions. However, the Fed favors the PCE index at 3% in June, with July data coming soon.
