Inflation Reduction Act Criticized for Failing to Align with 2% Inflation Target

Criticism has emerged regarding the effectiveness of the Inflation Reduction Act, with commentators questioning its impact on inflation. The act, which aimed to address inflationary pressures, has been scrutinized for potentially contributing to structural inflation through measures such as supply chain de-globalization, the Chips Act, student loan forgiveness, and record yearly deficit spending. These actions are seen as misaligned with the goal of achieving a 2% inflation target, leading to suggestions that either the target rate should be reconsidered or spending curtailed.