Midterm Candidates Pitch 4 Inflation Fixes as Economists Warn Relief Would Be Limited
Updated
Updated · abcnews.com · Nov 2
Midterm Candidates Pitch 4 Inflation Fixes as Economists Warn Relief Would Be Limited
3 articles · Updated · abcnews.com · Nov 2
Summary
Candidates in the final stretch before Tuesday's midterms are centering affordability plans on four ideas: ending the Iran war, cutting taxes, easing regulations and removing tariffs.
Economists told ABC that none of the proposals would quickly or dramatically lower prices, even where they could help at the margins.
The Iran war remains the clearest inflation driver: AAA puts gasoline at $4.16 a gallon, up $1.18 since February, and September gas prices rose more than 9% from August.
Tax cuts could leave households with more cash but also risk stoking demand and adding to the $40.5 trillion federal debt, which could keep borrowing costs elevated.
Supply-side deregulation and tariff cuts may eventually ease housing and some goods prices, analysts said, but construction takes years and retailers may not quickly pass savings to consumers.