āSubstantial riskā: Jim Chalmers reveals he feared a recession but worst is now passed
Jim Chalmers says the peak of inflation has passed but refused to predict when the nation would see interest rate cuts.
The Treasurer opened up about his sobriety, political ambitions and recession fears in a 7NEWS Spotlight profile that aired on Sunday.
Economic growth flatlined in the first two quarters of the year ā increasing just 0.1 points in March and 0.2 points in June ā and Dr Chalmers said there were pointers ahead of each set of national accounts that led him to fear the economy was going into recession.
āThere were some moments in the lead up to the release of that data where there was a very substantial risk that the economy might have gone backwards ā a lot of relief when we discovered that it hadnāt,ā he said.
āBut if youāre asking me was I worried at the time, too right I was.ā
Since then, the monthly inflation has dropped back to 2.7 per cent, within the Reserve Bankās target range for the first time, while unemployment has stayed stable at 4.1 per cent.
Dr Chalmers said the Governmentās approach was cautious rather than complacent.
Camera IconDr Chalmers said the Governmentās approach was cautious rather than complacent. Credit: Unknown/7NEWS Spotlight
āThere is light at the end of the tunnel, but thereās more work to do,ā he said.
āOne of the most heartening aspects of the most recent inflation data was the fact that the headline rate came down substantially, but so did underlying inflation, so did non-tradable inflation (and) services inflation.
āThat was a really welcome sign that weāre making progress together in this fight against inflation.ā
On the question of his political future, Dr Chalmers again insisted he was set on being Anthony Albaneseās treasurer long-term and ruled out a leadership challenge despite the latest Newspoll figures indicating diminishing support for the PM and his Labor Government.
Camera IconHe told Spotlight he had a āterrific relationshipā with his leader. Credit: Unknown/7NEWS Spotlight
He told Spotlight he had a āterrific relationshipā with his leader.
āRelatively frequently the first person I hear from in the day was the prime minister. He knows Iām an early riser,ā he said, adding they spoke about footy, family, āthings that mates talk about in Australiaā as well as work matters.
Dr Chalmers has been sober for four years, describing himself as a āpretty enthusiastic drinkerā before giving it up after a skin cancer scare and complications on a related minor operation.
āWhat it has meant, giving it away, is thereās more room in my life for the things that are more important to me,ā he said.
#Substantial #risk #Jim #Chalmers #reveals #feared #recession #worst #passed