{"id":123498,"date":"2021-02-10T15:13:25","date_gmt":"2021-02-10T20:13:25","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=123498"},"modified":"2021-02-10T16:46:34","modified_gmt":"2021-02-10T21:46:34","slug":"economists-alarmed-bidens-1-9-trillion-bill-may-overheat-the-economy","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/economists-alarmed-bidens-1-9-trillion-bill-may-overheat-the-economy\/","title":{"rendered":"Economists Alarmed Biden\u2019s $1.9 Trillion Bill May Overheat the Economy"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Feconomists-alarmed-bidens-1-9-trillion-bill-may-overheat-the-economy%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=123498&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div>\n<div class=\"featured_img\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2013\/04\/20130416-IMF-World-Econ-Outlook-Getty-166742088-Stephen-Jaffe-IMF-1200x800.jpg\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/02\/20130416-IMF-World-Econ-Outlook-Getty-166742088-Stephen-Jaffe-IMF-700x420-1.jpg\" alt=\"Abdul de Guia Abiad (L), Deputy Division Chief, Research Department; Thomas Helbling (2nd L), Division Chief, Research Department IMF; Economic Counsellor and Director of the Research Department, Olivier Blanchard (C); and Deputy Director of the Research Department, Jorg Decressin (R) hold a joint press conference on the World Economic Outlook at IMF headquarters in Washington, on April 16, 2013. (Stephen Jaffe\/IMF via Getty Images)\" \/><\/a><\/div>\n<p>&nbsp;<\/p>\n<\/div>\n<div>\n<p>Two leading economists said President Joe Biden\u2019s $1.9 trillion stimulus bill could overheat the economy, drive up prices, and force the Federal Reserve to respond by increasing the interest rate.<\/p>\n<p>Oliver Blanchard, former chief economist of the International Monetary Fund, said in <a href=\"https:\/\/twitter.com\/ojblanchard1\/status\/1358122337820962820\">series of tweets<\/a> on Saturday: \u201cMuch too much is both possible and harmful. I think this package is too much,\u201d he said. \u201cIt would take the unemployment rate very close to zero.\u00a0This would not be overheating; it would be starting a fire.\u201d<\/p>\n<p>Blanchard said\u00a0Biden\u2019s proposal of $1.9 trillion added to $800 Billion that Americans may be expected to spend out of their savings in 2020, plus $900 billion from the Trump Administration\u2019s CARES Act last December, accumulate to $3.6 trillion. This is 4 times his predicted $900 billion growth of the American economy in 2021.<\/p>\n<p>Blanchard said even if he made a conservative assumption, the demand would go 14 percent more than usual, and unemployment would go down close to zero.<\/p>\n<p>He said inflation would go much higher than the predicted 2.5 percent, and the Federal Reserve would have to respond by raising the interest rate.<\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-290265\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/02\/1646274841-600x444-1.jpg\" alt=\"Epoch Times Photo\" width=\"600\" height=\"444\" \/><\/p>\n<p>Lawrence Summers, former U.S. Treasury Secretary, speaks during an event at the London School of Economics, in London, March 25, 2013. (Jason Alden\/WPA Pool\/Getty Images)<\/p>\n<p><span lang=\"en-US\"><a href=\"https:\/\/www.washingtonpost.com\/opinions\/2021\/02\/04\/larry-summers-biden-covid-stimulus\/\">Larry Summers<\/a> said Thursday in an op-ed in Washington Post that Joe Biden\u2019s pandemic relief proposal is so big that it may risk triggering inflation and \u201cmuch of the policy discussion has not fully reckoned with the magnitude of what is being debated.\u201d<\/span><\/p>\n<p>But Biden\u2019s economic adviser <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/press-briefings\/2021\/02\/05\/press-briefing-by-press-secretary-jen-psaki-and-council-of-economic-advisers-member-jared-bernstein-february-5-2021\/\">Jared Bernstein<\/a> fired back on Summers\u2019 article and said on Thursday, \u201cJanet Yellen is our Treasury secretary, OK? She knows a little something about inflationary risks.\u201d<\/p>\n<p>Blanchard admitted that he could be wrong but very unlikely. The government needs to save people from poverty and respond to the pandemic, but he wrote, \u201cI think we do not need to spend 1.9 trillion for that, and we should have a smaller program.\u201d<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Two leading economists said President Joe Biden\u2019s $1.9 trillion stimulus bill could overheat the economy, drive up prices, and force the Federal Reserve to respond by increasing the interest rate.<\/p>\n","protected":false},"author":1,"featured_media":1893116,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[6213,3706,3895,4934,6214,4408],"class_list":["post-123498","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-alarmed","tag-bidens","tag-bill","tag-economists","tag-overheat","tag-trillion"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/123498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=123498"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/123498\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1893116"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=123498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=123498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=123498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}