Bloomberg/Molly Smith and Stephanie Flanders/6-29-2023
“[Bloomberg economist Anna] Wong says that, while Biden’s signature economic legislation—the Inflation Reduction Act, the CHIPS and Science Act, and the Bipartisan Infrastructure Law—are investments that will play out in the long term, short-term costs of higher inflation and recession risks may offset the benefits, and even outweigh them.”
USAGOLD note: The Biden Administration will no doubt put considerable pressure on the Fed to quash a pre-election recession, but given the lag factor and more hikes down the road, time will tell whether the die has already been cast.
