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WASHINGTON–Transportation Secretary and former South Bend Mayor Pete Buttigieg says a recession is “possible, but not inevitable.”

“We’re doing everything we can to strengthen the foundations of the American economy,” said Buttigieg in an interview on ABC’s This Week Sunday.

Economists have expressed concern that the Federal Reserve’s decision to increase interest rates will push the economy into a recession. Buttigieg said part of the work being done to keep that from happening is “expanding the productive capacity” of the country. He claims that it’s been hard for the supply side to keep up with demand in many sectors because demand has been surging “across the board.”

Even if it may be hard for you to see now, Buttigieg says President Biden is doing all he can to “create more breathing room for American families.”

“That’s part of why achievements like the Inflation Reduction Act are so important. We can’t turn back on the progress that’s been made,” said Buttigieg. Republicans like Indiana Senator Todd Young have called the Inflation Reduction Act ineffective, and he believes it doesn’t do what it says.

Buttigieg says Americans have more income because they have more jobs and better jobs. He says there is “historically low unemployment.”

The current nationwide unemployment rate is 3.6%. The inflation rate has been hovering around 8%. When inflation is high, you lose purchasing power. The increased supply of money causes goods and services to cost more. This means you aren’t as likely to save as much.