A sweeping bill passed by the US Senate on Sunday and intended to fight climate change, lower drug prices and raise some corporate taxes, would bring down inflation over the medium to long term and cut the deficit, rating agencies Moody’s Investors Service and Fitch Ratings said on Monday.
However, the legislation, known as the Inflation Reduction Act, would not bring down inflation “this coming year or next year,” Moody’s senior vice president Madhavi Bokil said.
The legislation was disinflationary, “but for all the rebranding of the legislation, the impacts on inflation are relatively small and will only really start to compound
Rating agencies expect US spending bill to cut inflation, deficit over time bworldonline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bworldonline.com Daily Mail and Mail on Sunday newspapers.
President Joe Biden on Tuesday signed a $280 billion bipartisan bill to boost domestic high-tech manufacturing, part of his administration’s push to boost US competitiveness over China.