Stephen Moore doubts need for $2T stimulus, predicting US economic growth

Stephen Moore doubts need for $2T stimulus, predicting US economic growth

Stephen MooreStephen MooreOn The Money: Trump gambles with new stimulus strategy | Trump cannot block grand jury subpoena for his tax returns, court rules | Long-term jobless figures rise, underscoring economic pain Trump gambles with new stimulus strategy Trump economist touts nation’s low poverty rate MORE, an economist and adviser to President TrumpDonald John TrumpNorth Korea unveils large intercontinental ballistic missile at military parade Trump no longer considered a risk to transmit COVID-19, doctor says New ad from Trump campaign features Fauci MORE, said he doesn’t think the country needs a $2.2 trillion stimulus package to help the economic recovery from the coronavirus pandemic, predicting that growth would happen naturally. 

“The economy really is showing signs of picking up. I don’t care what the newspapers say,” he said Sunday on John Catsimatidis’s radio show on WABC 770.

“I see really strong numbers coming in for the third quarter… 30 percent to 35 percent growth, which shatters the all-time record for growth in one quarter.”

“At this point, I’m not so sure we need a $2 trillion stimulus bill,” he added. “I think the fourth quarter will be just as strong as the third quarter.”

At the start of the month, House Democrats passed a $2.2 trillion stimulus package amid stalled negotiations between House Democratic leadership and the White House. The $2.2 trillion price tag is less than the mammoth $3 trillion stimulus bill the lower chamber passed in May of this year. 

The Senate GOP have put forth a paired down bill with a price tag of $1.1 trillion in late July, though Democrats immediately rejected the sum, saying that it was not enough to address the economic and health impacts of COVID-19. 

The remarks come amid negotiations on a stimulus deal between Speaker Nancy PelosiNancy PelosiDemocratic poll shows neck-and-neck race brewing in Florida House district Sunday shows preview: Trump, top Republicans recover from COVID-19; stimulus bill remains in limbo Senate Republicans rip new White House coronavirus proposal MORE (D-Calif.) and Treasury Secretary Steven MnuchinSteven Terner MnuchinSenate Republicans rip new White House coronavirus proposal Trump rallies supporters at White House in first event since COVID-19 diagnosis On The Money: Trump fuels and frustrates COVID-19 relief talks | Trump proposes .8T coronavirus relief package | Vegas ties helped Trump score M windfall in 2016 MORE. The White House offered a $1.6 trillion stimulus bill in recent weeks, but Senate Republicans were cool to the idea.

Later, the offer was increased t $1.8 trillion. 

Trump has thrown multiple wrenches into the negotiating process, announcing earlier this week that he was canceling negotiations between Pelosi and his administration before changing his tune and telling the speaker and Mnuchin to “go big.”

The GOP appears set on keeping the final price tag below $2 trillion, and Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellConservative group launches .3 million ad buy to boost Barrett SCOTUS nomination Senate Republicans rip new White House coronavirus proposal On The Money: Trump fuels and frustrates COVID-19 relief talks | Trump proposes .8T coronavirus relief package | Vegas ties helped Trump score M windfall in 2016 MORE (R-Ky.) has already noted that a high cost could deter some Republicans for voting for a bill out of concern over a ballooning national deficit and reelection campaigns. 

Pressure has remained high on lawmakers to reach a deal to help the still-sluggish economy recover more quickly from the coronavirus-fueled recession. Unemployment claims that were not seasonally adjusted this week rose 5,312 to a total of 804,307. 

While unemployment claims have fallen from the sky high levels seen earlier this year, they are still almost 200,000 claims above the pre-pandemic record high of 695,000 in October 1982.

John Catsimatidis is an investor in The Hill.

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