Biden’s $1.9 Trillion Plan May Overheat US Economy, 2 Economists Say

Abdul de Guia Abiad (L), Deputy Division Chief, Research Department; Thomas Helbling (2nd L), Division Chief, Research Department IMF; Economic Counsellor and Director of the Research Department, Olivier Blanchard (C); and Deputy Director of the Research Department, Jorg Decressin (R) hold a joint press conference on the World Economic Outlook at IMF headquarters in Washington, on April 16, 2013. Stephen Jaffe/IMF via Getty Images

Two leading economists say that President Joe Biden’s $1.9 trillion COVID-19 stimulus package might overheat the U.S. economy, drive up prices, and force the Federal Reserve to respond by increasing interest rates.

“Much too much is both possible and harmful,” Olivier Blanchard, former chief economist of the International Monetary Fund, said in series of tweets on Feb. 6.