The White Home is sticking with the Anti-Inflation Act after the CBO warned that it’ll not cut back inflation

The White House defends the Anti-Inflation Act in the face of a nonpartisan Congressional Budget Office report that says the legislation will not significantly lower inflation in the coming years.

“Would you please address the new CBO analysis of the Inflationary Reduction Act that says it will have little or no impact on inflation in 2022 and 2023.” White House Press Secretary Karine Jean-Pierre was asked during Friday’s briefing.

Jean-Pierre replied: “You know, the leading economists said that this deflationary law that these economists looked at would actually reduce inflation.”

Jean-Pierre was then asked if her answer meant she was “rejecting” the CBO report and if it was fair to call the law a “reduction in inflation law” when the CBO says inflation will not be significantly reduced.

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White House Press Secretary Karine Jean-Pierre speaks during the daily briefing at the White House in Washington. (AP Photo/Susan Walsh/AP Newsroom)

“Well, if you think about the Inflationary Reduction Act, it’s going to affect drug costs as well,” she explained. “Reduced drug prices, which will have a big impact on seniors and families.”

Jean-Pierre went on to say that the legislation will reduce energy costs, utility costs and Medicare costs, while also providing $300 billion in for reducing the USD deficit.

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Food price inflation

A man shops at a Safeway grocery store in Annapolis, Maryland. (Jin Watson/AFP via Getty Images/Getty Images)

“It will make a difference,” Jean-Pierre said. “This is going to fight inflation, so it should be called the Anti-Inflation Act because that’s what it’s going to do.”

Jean-Pierre was responding to a CBO report this week that said the bill would have a “marginal” impact on inflation.

“In calendar year 2022, passage of the bill would, in CBO’s estimation, have a negligible impact on inflation,” the agency said. CBO estimates that inflation in calendar year 2023 would likely be between 0.1 percentage point lower and 0.1 percentage point higher than under current law.

Jean-Pierre’s defense of the legislation comes on the same day that Senate Majority Leader Chuck Schumer, D-N.Y., said that A group of 230 economists who warn that the legislation will increase inflation are “wrong”.

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“They’re wrong… I don’t know what that list was… it’s as clear as the nose on your face,” Schumer told reporters.

Economists wrote in the letter that US economy is at a “dangerous crossroads” and the “misnamed” 2022 “De-Inflation Act” would do nothing of the sort, but would instead perpetuate the same fiscal policy mistakes that have helped worsen the current troubling economic situation.”

US job growth unexpectedly accelerated in Julydespite fears of a slowdown in hiring, even as the labor market faces the twin threats of inflation and rising interest rates.

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