Biden's climate envoy John Kerry admits he doesn't think the Inflation Reduction Act has 'much to do with inflation' - and lauds what it does for the climate

  • Kerry made the statement at a clean energy forum
  • The law includes $375 billion in programs intended to tackle climate change
  • A final CBO score for the bill said it would reduce the deficit by $238 billion, and said it would have a 'negligible' effect on prices next year
  • ¬†Kerry joked:¬†'And I'm not sure how much it has to do with inflation, but that's OK'¬†
  • He also referenced to how it shares an acronym with Irish Republican Army¬†

Former Secretary of State John Kerry said publicly that President Biden's Inflation Reduction Act doesn't have 'much' to do with inflation ‚Äď even as he praised the law's billions in climate funding.

Kerry was referring to the bill title that Senate leaders stuck onto the resurrected legislation after Senate Majority Leader Charles Schumer was able to hammer out a deal with West Virginia Sen. Joe Manchin, who had raised repeat concerns about potential impacts on record inflation.

Negotiators scrubbed Biden's proposals, many from his original Build Back Better plan, and slapped on the Inflation Reduction Act moniker, although many of its most ambitious programs that the administration cheered had to do with carbon emissions reductions and new funds to promote electric vehicles.

Kerry, the Biden administration's special envoy for climate, emphasized those provisions of the new law. The law includes $375 billion in programs intended to tackle climate change.

'And I'm not sure how much it has to do with inflation, but that's OK,' climate envoy John Kerry said of the new Inflation Adjustment Act

'And I'm not sure how much it has to do with inflation, but that's OK,' he quipped at the International Energy Agency's Global Clean Energy Action Forum, as Fox News reported.

The former Massachusetts senator and former secretary of state also made another joke about the name. 'We're running around saying, 'I support the IRA. That's tricky in politics, but here we are.''

A final Congressional Budget Act score for the bill said it would reduce the deficit by $238 billion, and said it would have a 'negligible' effect on prices next year. Th. An analysis by the Penn Wharton budget model concluded the 'impact on inflation is statistically indistinguishable from zero,' in part because deficit reduction in the early years was outweighed by payments to households that aren't 'liquidity constrained.'

The bill includes funds to encourage investment in alternative energy

The bill was retooled and renamed to accommodate Sen. Joe Manchin's (D-W.Va.) concerns about inflation

President Biden has been pitching its provisions for electric vehicles

Some estimates say it could lower US carbon emissions by 40 per cent

U.S. Special Presidential Envoy for Climate John Kerry and U.S. Secretary of State Antony Blinken listen to President Joe Biden address the 77th session of the United Nations General Assembly, Wednesday, Sept. 21, 2022 at U.N. headquarters

The law includes billions to promote wind, solar and other renewable energy, has tax incentives for battery production and electric vehicles, and allows Medicare to negotiate with drug companies for lower prices. It also has a 1% surcharge on corporate stock buybacks as a revenue raiser.

The bill, which cleared the Senate 51-50 with Vice President Kamala Harris breaking the tie, hailed 'amazing' the law.

He pointed to investment tax credits that he said were likely 'going to do more than almost anything else in the bill. We don't have to have government making choices about winners and losers. The marketplace is going to choose,' he said.

'You, inventors and investors, are going to help move that along, and we're going to get there.'

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John Kerry admits he doesn't think the Inflation Reduction Act has 'much to do with inflation'

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