The White House is defending the Inflation Reduction Act against a report by the nonpartisan Congressional Budget Office that suggests the legislation will not substantially reduce inflation in the coming years. “Could you refer to CBO’s new analysis of the DCA that says it would have almost no impact or negligible impact on inflation in 2022 and 2023,” White House press secretary Karine Jean- Pierre during Friday’s briefing. Jean-Pierre replied: “You know, leading economists have said that this deflation law that was analyzed by them, that was looked at by these economists, will actually reduce inflation.” Jean-Pierre was then asked if her response meant she was “rejecting” the CBO report, and if it’s fair to call the legislation the “Inflation Reduction Act” when the CBO says inflation won’t drop substantially. Soaring Inflation LEADS MORE AMERICANS TO LIVING PAYCHECK DESPITE 5.1% WAGE GROWTH White House Press Secretary Karine Jean-Pierre speaks during the daily briefing at the White House in Washington, DC (AP Photo/Susan Walsh / AP Newsroom) “Well, if you think about the Inflation Reduction Act, it’s going to have an effect on drug costs as well,” he explained. “Price reduction in drug costs, which will make a big difference for seniors to families.” Jean-Pierre went on to say that the legislation would reduce energy costs, utility bill costs and Medicare, while also putting $300 billion into deficit reduction. JULY JOB BREAKDOWN: WHICH INDUSTRIES HIRED THE MOST WORKERS IN THE MOST MONTH? A man shops at a Safeway grocery store in Annapolis, Maryland. (Jin Watson/AFP via Getty Images/Getty Images) “That will make a difference,” Jean-Pierre said. “This will fight inflation, and so it should be called the De-Inflation Act, because that’s exactly what it will do.” Jean-Pierre was reacting to a report this week from the CBO that said the bill would have a “negligible” effect on inflation. “In calendar year 2022, passage of the bill would have a negligible effect on inflation, according to CBO’s assessment,” the bureau said. In calendar year 2023, inflation would likely be between 0.1 percentage point lower and 0.1 percentage point higher under the bill than it would be under current law, CBO estimates. Jean-Pierre’s defense of the legislation comes on the same day that Senate Majority Leader Chuck Schumer, D-N.Y., said a panel of 230 economists warning the legislation would increase inflation was “wrong.” GET THE FOX BUSINESS ON THE GO BY CLICKING HERE “They’re wrong … I don’t know what that list was … it’s as simple as the nose on your face,” Schumer told reporters. The economists wrote in the letter that the U.S. economy is at a “dangerous crossroads” and the “misguided Inflation Act of 2022″ would do no such thing and perpetuate the same fiscal policy mistakes that helped accelerate the current worrisome economic climate”. U.S. job growth unexpectedly accelerated in July, defying fears of a hiring slowdown, even as the labor market faces the twin threats of inflation and rising interest rates.
