Yellen: Trump’s $1 trillion spending plan could cause trouble
Fed Chair Janet Yellen said Trump’s economic prescription is not what the country needs right now.
Yellen warned lawmakers that as they consider such spending, they should keep an eye on the national debt. Yellen also said that while the economy needed a big boost with fiscal stimulus after the financial crisis, that’s not the case now.
“The economy is operating relatively close to full employment at this point,” she said, “so in contrast to where the economy was after the financial crisis when a large demand boost was needed to lower unemployment, we’re no longer in that state.”
Yellen cautioned lawmakers that if they spend a lot on infrastructure and run up the debt, and then down the road the economy gets into trouble, “there is not a lot of fiscal space should a shock to the economy occur, an adverse shock, that should require fiscal stimulus.”
In other words, lawmakers should consider keeping their powder dry so they have more options whenever the next economic downturn comes along.
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4 responses to Yellen: Trump’s $1 trillion spending plan could cause trouble
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Willys41 November 18th, 2016 at 17:30
Trump will do what every republican does: Run the economy into the toilet. Why bother worrying about it?
Jungle_Bhoy November 18th, 2016 at 18:20
Too right, and of course those of us who thought they had a nest-egg for retirement are now about to find out that the Republicans call that a health-care account to replace Medicare – and they can’t wait to let the corrupt Medical Insurance companies bleed you of every penny you have. America what have you done?
amersham1046 November 18th, 2016 at 17:33
But the 1%ers have enough cash off shore to weather the storm
oldfart November 19th, 2016 at 02:08
Life’s a bitch if you ain’t rich.
Lawmakers still get paid even if they shut down the Government.