The spending initiative from Democratic Sens. Chuck Schumer and Joe Manchin will do little to combat inflation as prices surge to another record-breaking high.
Rep. John Katko discusses the latest on the energy and tax bill that was passed in the House and why he voted for it on ‘Fox Business Tonight.’
Democrats are pitching their newest health and climate spending bill as an inflation-fighting measure, but a new analysis published Friday suggests the legislation will actually do little to combat higher prices. Findings from the Penn Wharton Budget Model, a nonpartisan group at the University of Pennsylvania's Wharton School, show the initiative would have an impact on inflation that is "statistically indistinguishable from zero."
"The Act would very slightly increase inflation until 2024 and decrease inflation thereafter," the analysis said. "These point estimates are statistically indistinguishable from zero, thereby indicating low confidence that the legislation will have any impact on inflation." The bill could add just 0.05 percentage points to inflation in 2024, but would likely reduce consumer prices by an estimated 0.25 percentage points by the late 2020s. Most economists expect inflation to subside in coming years as pandemic-induced bottlenecks in the supply chain dissipate and the