‘When I see a coalition of Josh Hawley, Bernie Sanders and Donald Trump getting behind an idea, I think that’s time to run for cover.’
That’s Larry Summers, the former treasury secretary who is said to have advised President-elect Joe Biden, explaining to Bloomberg News why he believes $2,000 stimulus checks would be a “pretty serious mistake” that could overheat the U.S. economy. “When you see the two extremes agreeing, you can almost be certain that something crazy is in the air,” Summers added.
As it stands now, the status of the stimulus bill is still in limbo after President Trump on Saturday again urged Congress to pass it. Biden urged Trump to sign the bill, saying in a statement that the president’s “abdication of responsibility has devastating consequences.”
Trump, judging from his tweets, doesn’t seem on the verge of caving.
House Democrats last week attempted to increase the size of the relief payments from $600 to $2,000 but were blocked by Republicans, who have split from Trump on the package. House Speaker Nancy Pelosi said she would hold another vote on Monday.
Summers told Bloomberg that it’d be better to have stimulus than not, but that promoting consumer spending with cash isn’t the answer. He said that he’s “not even sure I’m so enthusiastic about the $600 checks.” Watch the full interview: