Khanna: Inflation Reduction Act Is Deflationary ‘Over the Long Run,’ ‘Not Going to Say That It’s Going to Lower Inflation Right Away’

On Wednesday’s broadcast of CNBC’s “Squawk Box,” Rep. Ro Khanna (D-CA) stated that the inflation Reduction Act reconciliation bill will be deflationary “Over the long run,” and said, “I’m not going to say that it’s going to lower inflation right away.”

Co-host Andrew Ross Sorkin asked, “I want to go to inflation, if I could, just for a moment, and I want to start there. Because, obviously, there’s a debate about whether this is actually going to end inflation or even reduce inflation at all. Do you have a view about that? And I know some people, by the way, who say, I don’t even care if it doesn’t end or reduce inflation, I’m here for the climate piece of it or I’m here for the healthcare piece of it or I’m here for the IRS piece of it.”

Khanna responded, “Over the long run, I think it will have a deflationary impact. I’m not going to say that it’s going to lower inflation right away. But if you’re making things in the United States, if we’re going to be making solar panels, if we’re going to have more energy independence, that means that it’s going to have less inflation.”

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