When the economic recovery finally picks up steam in 2019, the country could be in for a big bang stimulus package.
The Obama administration has proposed spending $700 billion over the next 10 years to boost growth and job creation.
That would be a massive amount for any one year.
But it could also be used to boost wages, boost the economy and create jobs for millions of Americans.
But in an interview with CBS News’ Scott Pelley, the Federal Reserve chief economist and the chairman of the Federal Open Market Committee, Ben Bernanke, said he thinks the stimulus package will not be as big as President Donald Trump has suggested.
The stimulus package, like any big-ticket item, would be very, very difficult to achieve in one year, Bernanke said.
But it’s something we need to do.
It’s a long-term effort.
It has to be a long term effort and I think we will see the kind of stimulus that we need.
“He noted that the United States is only now starting to see some of the gains that have been made during the economic rebound.
Bernanke was asked about the unemployment rate, the number of jobs added and the number that are counted as unemployed.”
That’s a really, really big number, but the unemployment rates for some groups of Americans, for example, are higher than they were a year ago, he said.
“And it’s a big problem because it means people who have a job are still unemployed, and that means families are still struggling,” Bernanke added.
“The question is, will we see that big bang, the kind that President Trump has promised?”
Asked if the Federal Housing Administration (FHA) will be able to get back to work, Bernkerke said it will be a challenging time for that.”FHA is still struggling and has been for years,” he said, “and it’s going to be difficult to get the housing markets back to full health.”
He also said that there’s a real possibility that the housing market could fall.
“I think the housing is in a lot of trouble, and the fact that the economy is recovering, we’re probably in a recession,” Bernkerkel said.
“And the housing, I think, is at risk of falling further than it’s ever fallen.”
The Federal Reserve is also considering more drastic action.
“We’re considering a very, I don’t want to use the word dramatic, but I would call it a big jump in the emergency fund,” Bernkke said.
Bernkkerke also warned against the risk of deflation, which has been a problem in many advanced economies.
“If inflation comes back up and falls even more, then that could cause inflationary pressures to grow and make it even harder to get out of this recession,” he added.