The Federal Reserve has the primary responsibility and role in bringing inflation down, but President Joe Biden's administration can focus on the supply chain and energy markets to help alleviate the pains of inflation, Treasury Secretary Janet Yellen said Thursday at the Ford Motor Company (NYSE:F) Rouge Electric Vehicle Center in Dearborn, Michigan, where the electric F-150 pickup is manufactured. 

Yellen spoke about Biden’s economic agenda and how the administration plans to invest in American jobs for the future at the factory, which 

Yellen On The Economy: Yellen outlined the actions the Biden administration has taken throughout the last year to combat supply chain bottlenecks and rising prices. 
“Last year, when supply chain bottlenecks contributed to upward pressure on prices, the administration worked with partners to recruit more truck drivers, to fund pop-up container yards and get several ports on 24/7 operations,” Yellen said.

“I believe this administration’s efforts have made a meaningful difference and will continue to do so.”

The Senate passed the Inflation Reduction Act, or the IRA, in August. The bill allocates billions of dollars of government funds to invest in the clean energy industry. The hope is that this will eventually bring down prices for energy in the United States.

"The Biden economic plan marks our government’s intent to return to serious scientific research and innovation,” Yellen said. 

Yellen On IRS Funding, Audits: Yellen spoke about the new funding for the IRS: $80 billion for the tax regulation agency of the United States. While some people may be worried that extra funding for the IRS means a higher likelihood they will be audited, Yellen said that will not be the case. 

“I have made clear that this funding will not be used to increase audit rates relative to recent years for households making less than $400,000 annually,” she said. 

With technological advancements associated with the investment into the IRS, everyday households should actually see fewer audits, the treasury secretary said. 

The funds will be used to more effectively ensure that high-net-worth individuals with more “opaque sources of income” are paying their fair share of taxes, Yellen said. 

Yellen's Policy Background: Yellen replaced Ben Bernanke as the Federal Reserve chair in 2013 under President Barack Obama. Before that, she had served as the vice chair for about three years.

Under Yellen, the Federal Reserve increased interest rates in 2015 for the first time since 2006, before the financial crisis. 

Despite raising rates four more times, the Federal funds rate stayed around 1.25-1.5% under Yellen, historically on the low end.

The economy was strong under Yellen, and when President Donald Trump was elected in 2016, he considered Yellen for a second term as Fed chair. Ultimately, Trump decided to go with Jerome Powell. 

Biden appointed Yellen to his cabinet to serve as the treasury secretary in 2020. Part of Biden’s platform when he ran was to invest in the future of America, improving infrastructure and bringing manufacturing jobs back to the country. 

The Last Word: With the Inflation Reduction Act, the government plans to spend billions of dollars on clean energy and electric vehicle initiatives. Companies that produce electric vehicles, like Ford, are set to benefit greatly from this bill. 

Treasury Secretary Janet Yellen speaks Thursday, Sept. 8, 2022 at the Rouge Electric Vehicle Plant in Dearborn, Michigan. Screenshot via C-SPAN.