text: Yesterday, the Senate reached an agreement on the so-called “Inflation Reduction Act,” which will add $433 billion in federal spending. According to a White House statement, the Act provides “tax credits and investments for energy projects” which will “create thousands of new jobs and help lower energy costs in the future.” According to a Democrat fact sheet, this Act will “reduce carbon emissions by roughly 40% by 2030.” The Act also offers $4,500-7,500 tax credits for purchasing electric vehicles, as well as tax credits for purchases of green initiatives, like environmentally-friendly heat pumps and water heaters, and rooftop solar panels. Finally, the Act sends $60 billion to low-income and minority populations who have been subjected to environmental pollution.Powell wants to reduce demand to curb inflation. He has to get unemployment up so that more Americans are out of work and stop spending money. And the federal government is about to pass a bill which will allegedly create thousands of new jobs, at a time when Powell wants to reduce the workforce, and provides incentives for Americans to go out and spend more money. It raises corporate taxes – expenses which will be passed onto the consumer. It also invests in green energy, which is more expensive to produce than fossil fuels. Powell’s efforts to bring down inflation are being counteracted by the federal government. It’s called the “Inflation Reduction Act” because it includes a $300 billion national debt payment, which will allegedly reduce inflation.This is the Great Inflation (1965-1982) all over again. The Johnson administration, faced with mid-1960s inflation, didn’t want to curb Great Society spending and weren’t in a position to cut Vietnam war spending. The result was the Fed was unable to combat inflation, and Americans saw a series of inflationary spikes. This is what happened:A repeat of the Great Inflation has been a recurring theme in the Economic Early Warning brief, and history looks to be repeating, especially if we see more spending packages pass through the Senate and the Fed starts to cut interest rates next year. In short, there are good reasons to expect inflation remains “uncomfortably high” into next year and beyond, despite widespread expectations that inflation will subside. – M.S.INSIDE THE BELTWAYWHITE HOUSE: President Biden and Chinese President Xi are scheduled to discuss reducing tariffs on Chinese goods, House Speaker Pelosi’s trip to Taiwan, and other matters.CONGRESS: The House is expected to vote on the CHIPS Act, to break American dependency on foriegn manufacturing of semiconductors. The House will also consider several environmental and conservation bills to bolster funding for wildfire research and water conservation efforts to combat widespread mega drought conditions. PELOSI INVITES SENIOR LAWMAKERS TO TAIWAN: House Foreign Affairs Committee Member Rep. Michael McCaul (R-TX) revealed that House Speaker Nancy Pelosi (D-CA) has invited a small group of U.S. lawmakers to accompany her to Taiwan, including himself and Rep. Gregory Meeks (D-NY). While McCaul has said he is unable to attend the trip due to a personal obligation, he has encouraged others to go in his stead saying, “It shows political deterrence to President Xi.” (AC: The Congressman’s comments are the first official confirmation of Pelosi’s trip, and are likely to encourage even more backlash from China and increase tensions in the region. – R.P.)DOMESTIC INTSUM