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

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

Stephen MooreStephen MooreA flat tax would collect more revenue than 85,000 added IRS agents States push back against federal unemployment policies delaying economic recovery Former Trump economic adviser to Biden: 'Stop taxing. Stop spending. Stop borrowing.' MORE, an economist and adviser to President TrumpDonald TrumpGuardian Angels founder Curtis Sliwa wins GOP primary in NYC mayor's race Garland dismisses broad review of politicization of DOJ under Trump Schumer vows next steps after 'ridiculous,' 'awful' GOP election bill filibuster 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 PelosiPelosi quashes reports on Jan. 6 select committee Overnight Defense: Joint Chiefs warn against sweeping reform to military justice system | Senate panel plans July briefing on war authorization repeal | National Guard may have 'training issues' if not reimbursed On The Money: Powell says pickup in job gains likely this fall | Schumer, Pelosi meeting with White House on infrastructure MORE (D-Calif.) and Treasury Secretary Steven MnuchinSteven MnuchinDemocrats justified in filibustering GOP, says Schumer Yellen provides signature for paper currency Biden's name will not appear on stimulus checks, White House says 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 McConnellSenate GOP blocks voting rights bill Schumer, McConnell spar as GOP prepares to block voting bill Trump has 'zero desire' to be Speaker, spokesman says 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.