Commerce Sec’y Raimondo: Our Efforts to Combat Inflation ‘Are Working,’ We ‘Have to Be a Bit More Patient’

On Thursday’s broadcast of Bloomberg’s “Bloomberg Markets: European Close,” Commerce Secretary Gina Raimondo stated that the Biden administration’s actions to combat inflation “are working,” despite the September inflation number being higher than they would want, and “we just have to be a bit more patient.”

Raimondo said [relevant remarks begin around 13:30] the inflation number is “higher than we would like it to be, which is why it’s President Biden’s top priority. We know it affects consumers every day when they go to the grocery store and such. But the reality is, there is some good news here, which is to say, you’re starting to see — housing costs are starting to cool, core inflation is starting to cool. As we all know, this is a global problem. There’s not a country on earth right now not struggling with inflation. And as we put COVID behind us and get back to business as usual in the supply chain, I think the Fed’s action will start to have an effect and consumers will continue to feel it. But it takes a bit of time for the Fed’s actions and the supply chain actions that we’ve taken to work [their] way through the system.”

Bloomberg host David Westin then asked, “What is the plan at this point? Because it doesn’t appear to be working, at least to those of us out here.”

Raimondo responded, “I would say we have to stay at it. And I’m not sure I would agree that our plan isn’t working. For example, if you look at the supply chain, the actions this administration has taken, from unclogging the ports, to recruiting more truck drivers, to working with industry [have] absolutely improved [the] supply chain, which has reduced inflation. The Inflation Reduction Act, which President Biden successfully got through Congress a couple of months ago, you see today that, for seniors, they’re getting an increase in Social Security checks, but a decrease in their Medicare premiums because of President Biden and the Inflation Reduction Act, which is going to keep a lid on prescription drugs and healthcare costs. So, I think that our actions are working, David, and certainly, the Fed’s actions are working. We just — I wish there were a magic wand. The fact that every country in the world is struggling with inflation and, frankly, America’s doing better than any other country tells you there’s no magic wand and we have to get up every day and attack it to provide relief to the American people.”

She later said, “The strongest tool in the toolbox to fight inflation is in the Fed’s hands, and they are raising rates, and, as I said, the leading indicators, housing costs are starting to cool down a bit. I think, as hard as it is to be patient, we just have to be a bit more patient.”

Follow Ian Hanchett on Twitter @IanHanchett