Trump economist Steve Moore on Sunday said President Joe Biden and Senate Majority Leader Chuck Schumer are "acting like we have an unlimited credit card" with their $3.5 trillion budget bill.
"The economy is strong right now. No question about it," Moore said Sunday during an appearance on the "The Cats Roundtable" radio show on WABC 770 AM with host John Catsimatidis.
"We see businesses re-opening all over the country. … Travel is amazing. Flights are getting filled up. Hotels are getting filled up. That’s one of the reasons prices [are] … going up," Moore said. "I like the direction of things right now. But I’m worried about two things: The inflation rate is really disturbing. We are seeing 5% to 6% rates of inflation … and the Fed is not taking action.
"The other thing that really concerns me … is the $3.5 trillion that Chuck Schumer and Joe Biden [want to spend] in their [budget] bill," he added. "That’s on top of the $4 trillion budget they already have, and the $1.9 trillion we spent earlier this year [on stimulus]. … I think [they are] acting like we have an unlimited credit card … They’re using the COVID crisis and its aftermath to rebuild a massive welfare state."
Senate Democrats on Wednesday released the framework for their budget resolution bill, which contains nearly all of Biden’s American Families Plan bill plus the addition of Medicare coverage for hearing, vision and dental care.
Some of the policy projects funded by the proposal are: free universal preschool for all 3-and 4-year-olds, free community college for all students, expanded access to the summer EBT program, extension of of the $1.9 trillion COVID stimulus plan’s provision lowering health insurance premiums for those who buy coverage on their own and the of the child tax credit expansion included in the COVID relief bill and tax breaks for renewable energies, among other items.
Some economists say the plan will lead to further inflation. June registered a 5.4% annual increase in inflation.
"Inflation is a killer of bull market rallies," said Moore. "You saw it happen in the '70s with inflation — it just killed the market. ... Investors have to be very nervous about the increase in prices. Because what happens is that bonds become more attractive, and stocks become less attractive.
"I want the Fed to stop buying up all these mortgages," he said. "I want them to stop buying up the debt. It’s time to start taking some of this monetary liquidity out of the market, not put more of it in."