ICYMI: EXCLUSIVE Rating agencies say Biden's spending plans will not add to inflationary pressure
"The bills… take the edge off of inflation"
Today in Reuters, economists and analysts from leading rating agencies stated that the President's Build Back Better Act and the Bipartisan Infrastructure Law will not contribute to inflation. Their comments echo 17 Nobel Prizewinners in Economics who have already said they believe the Build Back Better Act will "ease longer-term inflationary pressures" by cutting costs for working families, investing in productivity improvements, and creating jobs.
See excerpts from the article below:
Reuters: EXCLUSIVE Rating agencies say Biden's spending plans will not add to inflationary pressure
[By Kanishka Singh, 11/17/21]
"The two pieces of legislation 'should not have any real material impact on inflation', William Foster, vice president and senior credit officer (Sovereign Risk) at Moody's Investors Service, told Reuters."
"'The bills do not add to inflation pressures, as the policies help to lift long-term economic growth via stronger productivity and labor force growth, and thus take the edge off of inflation,' said Mark Zandi, chief economist at Moody's Analytics[.]"
"'The bills are largely paid for through higher taxes on multinational corporations and well-to-do households, and more than paid for if the benefit of the added growth and the resulting impact on the government's fiscal situation are considered', [Zandi] said in an interview."
"… [O]ver the longer-run, the social spending legislation could increase labor supply through provisions such as childcare, and productivity, [Senior director and Americas sovereigns co-head at Fitch Ratings Charles] Seville told Reuters."
Joseph R. Biden, ICYMI: EXCLUSIVE Rating agencies say Biden's spending plans will not add to inflationary pressure Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/353415