Bloomberg Tax
July 29, 2022, 5:27 PM

‘Inflation Reduction Act’ Has Little Inflation Help, Study Says

Erik Wasson
Erik Wasson
Bloomberg News
Ramsey Al-Rikabi
Ramsey Al-Rikabi
Bloomberg News

The Inflation Reduction Act of 2022, the breakthrough US legislative deal on key parts of President Joe Biden’s agenda, likely won’t reduce inflation at all, according to a study.

And that’s coming from researchers influential with the senator whose vote was crucial to sealing the deal, Joe Manchin of West Virginia.

The study, from the Penn Wharton Budget Model, estimates the act would cause inflation to “very slightly” rise until 2024 then slide after that.

Senator Joe Manchin, a Democrat from West Virginia, speaks with members of the media at the US Capitol building in Washington, D.C., US, on Wednesday, May 11, 2022.
Source: Bloomberg

Overall, the researchers said in the report Friday, there’s “low confidence that the legislation will have any impact on inflation.”

The ...