0.25% or 0.33%? Democrats’ Inflation Reduction Act wouldn’t lower prices by all that much, analysts say

The reviews are coming in for Senate Democrats’ Inflation Reduction Act of 2022, and some analysts are suggesting the $739 billion healthcare, energy and tax package won’t actually reduce inflation by a great deal.

“We estimate that the Inflation Reduction Act will produce a very small increase in inflation for the first few years, up to 0.05 percent points in 2024. We estimate a 0.25 percentage point fall in the PCE price index by the late 2020s,” said Penn Wharton Budget Model analysts in a report, referring to the Federal Reserve’s...