The inflation reduction act, negotiation and the briar patch

Post Reply New Topic

I think the inflation reduction act is silly because Congress thought they could bring inflation under control by printing even more money through the Federal Reserve in the Inflation Reduction Act.At least that was the impression by accountant friend had.

The Federal Reserve is independent of Congress and sets its own levels of "money printing".

The IRA (unfortunate acronym) probably won't lead to more money printing. It's also not clear to me whether it will reduce inflation. In theory it should lead to a smaller government deficit, which should reduce inflation as money is taken out of the economy. But whether this balances out the effect that new taxes will have on prices, or the simultaneous injection of demand by spending on energy, is unclear.

The joint negotiation of drug prices is genuinely clever and should have been done a long time ago.

I am well aware that the Fed is not part of the federal government,.I was not implying that it was.Thats why I said"through the Federal Reserve"