The coming Biden boom, and its risks

The Biden stimulus will turbocharge the US economy, but could trigger inflation risks

Learning from the Trump administration, the Biden Democrats seem to have decided to use their majorities in Congress to single-mindedly push through their progressive agenda, with or without Republican support. PHOTO: REUTERS
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SINGAPORE - "Now is the time to go big," said US President Joe Biden during a roadshow to tout his administration's first big spending programme, the US$1.9 trillion (S$2.5 trillion) American Rescue Plan, which he signed into law on Thursday (March 11).

With the programme - which comes on top of the US$2.2 trillion package of March last year, another US$900 billion in December and other smaller expenditures - the United States will have splurged more than US$ 5 trillion on Covid-19 relief, equivalent to more than 27 per cent of gross domestic product (GDP), among the largest fiscal outlays in the world.

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