China News Service, August 17th. On the 16th local time, US President Biden signed the "2022 Inflation Reduction Act", marking the official entry into force of the Act.

Biden claimed the bill was "one of the most important in American history."

However, many U.S. media and experts believe that the bill will not solve the inflation problem, but will exacerbate inflation, or further recession in the U.S. economy, putting the country in trouble.

Some U.S. media even compared the bill to another "poison" that the Biden administration has prescribed to the U.S. economy.

Data map: US President Biden.

'It made everything worse'

　　The more than 700-page bill, with a total expenditure of about $430 billion, covers areas such as climate, health care, and tax reform, and aims to reduce government deficits and address economic problems such as inflation.

File:U.S. Capitol Building.

　　However, in the face of this bill, which is called "one of the most important legislation in the past decade" by some US politicians, the outside world has raised many questions about its actual ability to fight inflation.

　　Yahoo Finance News, citing a budget model from the Wharton School of the University of Pennsylvania, states that over the next 10 years, the bill will have a "statistically negligible impact on inflation."

Meanwhile, the nonpartisan Congressional Budget Office earlier acknowledged that the bill will not reduce inflation and will only have a "negligible" impact on U.S. inflation this year and next.

　　The famous American economic magazine "Business Facilities" quoted the president and CEO of the National Manufacturers Association, Jay Timmons, as saying that the association is firmly opposed to the inflation reduction bill.

Timmons believes that the United States is currently facing severe economic headwinds such as high inflation, and the bill will only increase manufacturers' taxes and weaken their competitiveness, "cannot promote the development of the manufacturing industry, the growth of the national economy, or even the growth of the United States' global leadership. promote".

　　US Fox News also reported on senior Republican Senator Lindsey Graham's opposition to the inflation-cutting bill.

Graham said the tax and health care measures in the bill are "very unwise, and will not help address inflation."

　　He even pointed out that the bill will further reduce the U.S. economy, because the tax hike on companies is too heavy, it will only increase their cost on a series of expenses such as energy, and ordinary consumers will ultimately pay the bill, which "makes everything worse".

Another "poison" for the US economy?

　　In fact, since May this year, U.S. economic inflation has continued to climb, hitting new highs in more than 40 years, almost out of control.

According to the latest data from the U.S. Commerce Department, U.S. GDP has recorded negative growth for two consecutive quarters, raising concerns that the economy may slip into recession.

Data map: US dollars.

　　The Inflation Reduction Act took effect against this grim backdrop, deepening concerns about the future of the U.S. economy.

　　The New York Post recently published an editorial titled "Under false labels, Democrats continue to "poison" the U.S. economy.

　　"Last year, Democrats brought us skyrocketing prices with a bill that pretended to stimulate the economy, and now they're hitting the economy with another bill that pretends to fight inflation."

　　The newspaper analyzed that the bill was named the Inflation Reduction Act, which is absurd because it has no effect on reducing inflation.

Worse than the absurd naming is that the hundreds of billions of dollars in taxes required by the bill will hit Americans hard, potentially causing a deepening recession that could put the entire United States in trouble.

　　The US Consumer News and Business Channel also quoted O'Shares ETF chairman Kevin O'Leary as saying that the US government's naming of the bill as the Anti-Inflation Act is a joke, "The bill will increase inflation almost immediately because the government is printing billion dollars".

　　With inflation expectations high and recession looming, where will this so-called anti-inflation bill take the U.S. economy?

　　Roubini, an economist known as "Dr. Doom," told Bloomberg in an interview that given the Fed's most aggressive monetary tightening in decades, the U.S. economy has only two options: a hard landing or persistently high inflation.

　　Roubini analysis said, "The federal funds rate should be much higher than 4% to push inflation to 2%, I think the benchmark rate may need to reach 4.5%-5%."

　　In his view, if you don't do this, you can't control inflation expectations.

But if it does, the economy will have a hard landing.

"So it's a choice, either a hard landing or runaway inflation."

　　In addition, Goldman Sachs chief economist Jan Hatzius also believes that it is difficult for the Fed to prevent the U.S. economy from falling into a deep and painful recession, which is a hard landing.

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