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Sun Feb 28, 2021, 08:41 PM

Once Trump's 'enemy,' Fed emerges as White House ally in rejecting concerns about overdoing stimulus

As prominent economists, Republican lawmakers and some market analysts raise alarm bells about the risks of overspending and overstimulating the economy, the Biden administration has found a surprising ally: the Federal Reserve.

The House passed President Biden’s $1.9 trillion coronavirus relief bill early Saturday morning, and the Senate is expected to follow suit shortly. The legislation would pump money into an economy that could blast off as the pandemic settles down.

Federal Reserve Chair Jerome H. Powell is waving off concerns about an over-torqued economy producing long-feared inflation, saying the job market has a long way to heal before such fears are justified. In recent weeks, the position has been repeatedly embraced and cited by top Biden officials who make a similar argument when they say Congress needs to “go big” to ensure an economic revival.

As a result, the Fed and the White House appear closely aligned on policy — which can be a risky place for the central bank. With Powell at the Fed, and his predecessor Janet Yellen serving as treasury secretary, neither power center regards the potential dangers of overspending as a top concern.

https://www.msn.com/en-us/news/politics/once-trumps-enemy-fed-emerges-as-white-house-ally-in-rejecting-concerns-about-overdoing-stimulus/ar-BB1e5CDe?li=BBnb7Kz

Even they're getting tired of Republican doodoo economics.

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Reply Once Trump's 'enemy,' Fed emerges as White House ally in rejecting concerns about overdoing stimulus (Original post)
Yo_Mama_Been_Loggin Feb 28 OP
underpants Feb 28 #1
WHITT Feb 28 #2
erronis Feb 28 #3
Wounded Bear Feb 28 #4

Response to Yo_Mama_Been_Loggin (Original post)

Sun Feb 28, 2021, 08:45 PM

1. It's a no brainer really

Glad the Fed is on board. Of course they may be doing some of the lending

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Response to Yo_Mama_Been_Loggin (Original post)

Sun Feb 28, 2021, 09:09 PM

2. Yes

The current chair of the Fed, Powell, stated we have to go BIG, and the danger is not going big enough.

The current Treasury Secretary and former chair of the Fed, Yellen, stated we have to go BIG, and the danger is not going big enough.

But the Repubs don't want the economy to recover, they want it to stay weak so they use it to run against the Dems in '22.


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Response to Yo_Mama_Been_Loggin (Original post)

Sun Feb 28, 2021, 09:50 PM

3. I think you're confusing (r)epuglicons with rational people who care about the economy.

In their minds if the economy is doing well for everyone then they can't cheat as much.

Used car salesmen all. Sell you a lemon and make you pay for sugar to coat the wreck.

Leave you an energy disaster in Texas and take a margaritaville vacation in Mexico.

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Response to Yo_Mama_Been_Loggin (Original post)

Sun Feb 28, 2021, 09:57 PM

4. The Fed is getting worried about all of their QE "stimulus" propping up the markets...

which basically has no ROI in tax revenues returned because it isn't helping the broader economy.

At least the Biden Rescue plan includes the kind of borrowing that actually gets real stimulus going.

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