Do We Really Need More Stimulus?

As we speak, Republicans and Democrats are still wrestling over another coronavirus stimulus package. Everyone wants one, we’re told, and the economy needs one.

Don’t start spending that stimulus check just yet.

Despite what they claim, Democrats don’t really want a deal, no matter how big, at least not until after the election. Do you really believe that Nancy Pelosi and Chuck Schumer want to allow President Trump to play Santa Claus and send out $1,200 checks to American voters right before the election? Needless to say, the president would just love to have his name on those checks.

So don’t count on another stimulus package until after the election, if then. It’s a valid question of whether the country really needs another one. But never fear, the Federal Reserve will step in where Congress fears to tread.

At its September 15-16 monetary policy meeting – the last one before Election Day – the Fed updated and revised its prognosis upward for the U.S. economy, finally catching up with many other analysts and some of its own regional banks who are forecasting a much brighter picture than Fed Chair Jerome Powell and many other Fed officials have been painting over the past couple of months.

The Fed now expects U.S. economic growth to be negative 3.7% for this year, a big upgrade from its negative 6.5% projection in June. It also expects positive growth of 4.0% next year (down from 5.0%), 3.0% in 2022 and 2.5% in 2023. Regarding unemployment, it expects the jobless rate to fall to 7.6% this year from its June projection of 9.3%, declining further to 5.5% next year, 4.6% in 2022, and 4.0% – i.e., full employment – in 2023. Continue reading "Do We Really Need More Stimulus?"

Trader's Blog Contest For March

"Is The Government's Spending Out Of Control?"

Yes, No... Don't Care? The new administration is tossing around billions of dollars, but are the allocations justified? Do you think that the proposed stimulus package is money worth spending, or do you think that things have gotten out of hand?

Just answer... Yes, No, or Don't Care (specific opinions optional)  to be entered in a drawing for the prize below.

Prize

Winner will receive 3 DVD workshops on Taxes & Trading from our authors in INO TV and a hardback copy of "Trade Your Way To Wealth" by Bill Kraft. If your comment is drawn, your prize will be mailed to you courtesy of INO TV. No shipping, no handling, no catches.

How To Enter:

Comment on this post telling us if you think that the government's spending is out of control. Just write YES or NO, but feel free to voice your opinion... just keep it clean!

Rules

1. This contest is open until 11:59 PM on March 31st, 2009.

2. No wrong answers, any participation counts as an entry.

3. One entry per email address.

4. Winner will be picked by random integer software.

5. Winner will be contacted on Thursday, April 2nd, 2009 via email.

Good luck!