The next round of fiscal support, by contrast, will flow into an economy that’s already bounced much of the way back. Millions of Americans, especially among low-income groups, are still suffering the full effects of the slump, and that’s why the government says another round of spending is vital. “I do think there are fiscal limits, but I don’t think we’re that close to those fiscal limits," he said. All of that makes for a combustible mix into which to throw another $1.9 trillion of stimulus, according to the overheating camp. Perhaps more surprisingly, Larry Summers -– a top official in the last two Democratic administrations and a longtime advocate of more active fiscal policy –- weighed in with a similar warning.

Source: Mint February 09, 2021 16:00 UTC