Statement By NYC Comptroller Brad Lander on Economic Conditions Facing NYC

New York, NY – Following the release of national GDP data on Thursday, the Federal Reserve’s announcement of interest rate hikes, and the new U.S. Senate deal to combat inflation and invest in climate solutions, New York City Comptroller issued the following statement:

“The proposed Inflation Reduction Act promises urgently needed investments to confront the climate crisis and curb rising costs for families, welcome news for New Yorkers. I’m grateful to Senate Majority Leader Chuck Schumer for moving negotiations forward on important investments in renewable energy and lower prescription drug prices. While the federal government can do more on housing affordability, child care, and expanded health care coverage, this hallmark legislation will make a big difference in the lives of New Yorkers and people across the country.

“Our economic horizon remains choppy: the GDP data released on Thursday leaves little doubt that the recovery is slowing and high inflation persists. Both federal and municipal action is required to stave off an economic downturn and ensure our recovery benefits all our communities.

“At the national level, we must learn from the success of COVID spending programs, like the expansion of pandemic unemployment assistance to freelancers, to help those at the margins of our economy weather the coming storms. I also urge the Federal Reserve to maintain a data-driven approach that is mindful of its dual-mandate to both stabilize prices and achieve maximum employment.

“Locally, the City of New York must prepare to soften the blow of a possible downturn’s effects to City services and the wallets of our residents. My office identified approximately $800 million in year-end excess revenues that should be deposited into our long-term savings. Our City still has one-time federal stimulus money remaining to fill gaps in school budgets, and we must build our long-term reserves to withstand a future recession.

“This is a pivotal moment to reorient our city to tackle the long-term questions facing the City’s economy, as our office job ecosystem shifts away from a traditional 9-to-5 model and changes the geography of business activity, giving rise to more flexible remote work and more precarious gig work. The infrastructure dollars coming from the Infrastructure Investment and Jobs Act and the potential climate investments from the Inflation Reduction Act will be huge opportunities for New York City to make long term, job-generating investments in projects, like Public Solar NYC, which will secure a thriving economy for the next generation.”

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