US House passes Inflation Reduction Act, Nancy Pelosi calls it 'historic & transformative'

The US House of Representatives on Friday nodded to a massive economic package worth $430 billion to fight burgeoning inflation in the country. The bill named Inflation Reduction was tabled before Congress after the US Senate approved it by 51-50 ballot with US Vice President Kamala Harris casting the tie-breaking vote. The bill now awaits final approval by American President Joe Biden, who has expressed repeated intention to sign it.

The 775-page legislation is expected to help Washington fight the growing inflation in the wake of skyrocketing fuel and food prices in global markets, and climate change by raising "some corporate taxes" and lowering the price of medicines. Elated on the approval of the bill by the Senate, Senate Majority leader Chuck Schumer Walker this week said that the Inflation Reduction Act is dedicated to the "Americans who have lost faith that Congress can do big things." He added, "the Senate is making history."

Inflation Reduction Act

After months of negotiation, the proposal was passed by the House and Senate and is due for formal signature by Biden. The bill is expected to slow down consumer prices that are climbing at the fastest pace in about 40 years. It is expected to make baby steps to bring down the prices to what economic experts describe as "normal levels." The director of Economic Policy at the Bipartisan Policy Centre, Shai Akabas, explained that "it will generally work in the right direction and help the Federal Reserve," NPR.org reported.

The bill targets inflation in notably three ways, Akbas underscored. Firstly, it aims to reduce the Federal deficit (the difference between revenue & taxes and spending.)  Second, it will promote the manufacturing and production of goods and renewable energy, to overcome the gap in demand and supply, thus lowering the increasing prices. The provisions also included capping on prescribed drug costs. Nevertheless, the expert highlighted that the major inflationary causes - food and fuel prices are not immediately addressed in the bill and a massive sum is expected to go into balancing the deficit.

Pelosi hails 'historic & transformative' bill

US House Speaker Nancy Pelosi on Friday hailed the said bill as "historic and transformative." Delivering an address on the House floor, Pelosi said, "Our Inflation Reduction Act is a robust cost-cutting package that meets the moment, ensuring that our families thrive and that our planet survives. This landmark [legislation], which we send to the President's desk, starts – and it is a resounding victory for America's families, starting at their kitchen table."

(Image: AP)