Anti-inflation bill without quick effects - Moody's
Bond credit rating agency Moody's said on Wednesday that the Inflation Reduction Act would have medium and long-term effects on the United States economy by increasing productivity and investment, however without immediately lowering soaring consumer prices.
"If it spurs productivity-enhancing investment, the legislation could both support demand and increase supply efficiency over the medium- to long-term. However, these measures will not lower currently high inflation rates," Moody's vice president Claire Li noted.
The bill's effects will vary from sector to sector, with the largest changes expected in the country's battle against climate change as well as positive developments in the healthcare sectors. On the other hand, the introduced corporate alternative minimum tax will also affect oil & gas giants' business activities.