U.S. President Biden signs the “Inflation Reduction Act”, criticized by experts: it is hard to see results in name – Xinhua English.news.cn

On August 17, the Federal Reserve announced the minutes of its July monetary policy meeting, which showed that “there is little evidence that inflation pressures are weakening.”

US President Biden signed the “Inflation Reduction Act” on the 16th, claiming that the bill can ease inflation and reduce deficits. However, American analysts believe that, in fact, this bill only focuses on short-term electoral interests, and the actual effect of curbing inflation is very limited. Instead, it may further push up domestic inflation in the United States and bring greater risks to the recovery of the world economy.

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Some American experts pointed out that although the bill is called the “Inflation Reduction Act”, it actually has nothing to do with tackling inflation. It is just a “shrinking and thinning” of the large-scale economic stimulus plan proposed by the Biden administration last year, “Building a Better Future”. “Version.

The “Washington Observer” website pointed out that the White House, Democrats and some media “played word games” and tried their best to package and promote the “Inflation Reduction Act”, the main purpose of which is to boost the Democratic Party’s election before the mid-term elections.

The US mid-term elections will be held in November. The current Democratic Party’s election is not optimistic. One of the main reasons is the inability to deal with inflation.

Since March this year, the year-on-year increase in the U.S. consumer price index has remained at a high of more than 8%. Although US President Biden emphasized the positive effect of the new bill on increasing fiscal revenue and reducing inflation, many American economists believe that the bill will not have a substantial impact on inflation. The bill would reduce inflation by about 0.1 percentage point over the next few years, “which is statistically indistinguishable from zero,” according to estimates from the Wharton School of Business budget model at the University of Pennsylvania.

Regarding the current serious inflation problem in the United States, many economists pointed out that this is the result of the combined effect of the US government’s large-scale fiscal stimulus policy and ultra-loose monetary policy.

Since March 2020, the Federal Reserve has launched a series of unconventional quantitative easing monetary policies in response to the economic difficulties after the outbreak. Due to the hegemonic status of the US dollar, the adverse consequences of the above-mentioned actions of the United States not only affect its own country, but also bring shocks to the global economy. After the escalation of the Ukraine crisis, the United States also abused the “big stick” of economic sanctions to disrupt the global supply chain and further aggravate the inflationary pressure faced by the world economy.

In the face of its own and global inflation problems, the United States not only failed to learn its lessons, but continued to “spray water and money” in the “Inflation Reduction Act”.

American mainstream media such as CNN, Consumer News and Business Channel have all called the bill a “massive new spending bill”. The British “Daily Telegraph” website said that the “Inflation Reduction Act” is a repeat of the frenzied spending policies introduced by the US government last year, and these policies have caused the global economy to fall into chaos.