President Joe Biden recently acknowledged that the $700 billion Inflation Reduction Act, which allocates $369 billion toward green energy projects, was wrongly named. Speaking at an event in Wisconsin, Biden referred to it as “the most significant climate change law ever” and admitted, “we should’ve named it what it was,” given its limited impact on inflation.

Economic analysis supports Biden’s admission. The Penn Wharton Budget Model estimated the bill would reduce inflation by just 0.1% over five years. Similarly, the Congressional Budget Office found it would have minimal effect on inflation.

The legislation, a scaled-down version of the Build Back Better Act, passed narrowly in the Senate by a 51-50 vote, with Vice President Kamala Harris casting the tiebreaker. The bill primarily addresses climate initiatives, allows Medicare to negotiate drug prices, extends Obamacare subsidies, and includes $80 billion in IRS funding.

Financial experts, including BlackRock CEO Larry Fink, have criticized the spending in the Act for making it harder to reduce inflation. Despite its name, the Act has been widely viewed as a climate and healthcare reform bill rather than an inflation-fighting measure.