President Joe Biden is expected to sign the Inflation Reduction Act into law on Tuesday. Ahead of the signing, experts have been warning that the bill won’t actually help reduce inflation. Michael Ashton, Managing Principal at Enduring Investment LLC, told Kitco News that investors should be diversifying their portfolios with commodities and precious metals. In other news, Bank of America’s Global Fund Manager survey for August found that 58% of those polled expect that a recession is coming within the next 12 months.
Kitco News/Cornelius Christian
The Inflation Reduction Act is a ‘tax-and-spend package’ that won’t reduce inflation; investors should diversify into ‘real’ assets
As U.S. inflation remains high at 8.5 percent in July, Phil Magness, Research and Education Director at the American Institute for Economic Research, called the Inflation Reduction Act “just a tax-and-spend package,” arguing it wouldn’t reduce inflation.
“[The Inflation Reduction Act] is another exercise in Orwellian language,” said Magness. “They’re redefining terms… [it’s] just a tax-and-spend package.”
President Biden is expected to sign the act into law tomorrow. The act includes $430 billion in new spending, with more than $300 billion allocated to climate-related programs. The bill also tightens tax loopholes on the wealthiest Americans and allocates more funding to the Internal Revenue Service.
Continue reading, here.
Business Insider/Phil Rosen
Recession fears increase among investors with 58% now expecting a downturn in the next 12 months, BofA says
Recession fears continue to climb among investors, as Bank of America’s Global Fund Manager survey for August found 58% expect a downturn in the coming 12 months.
That’s up from 47% in the last monthly survey, and marks the highest rate since May 2020.
As concerns of a downturn abound, BofA found that 88% of investors anticipate inflation to cool over the next year. The last time expectations for decreasing inflation registered at this clip was during the global financial crisis, analysts said.
Keep reading, here.
Is it too soon to celebrate better-than-expected inflation data?
‘Barron’s Roundtable’ panel discusses if the latest inflation print will stop the Fed from raising rates.
You can watch the full interview, here.