How bleak January jobs report boosts chances of Biden's stimulus plan - Business Insider

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The bleak January jobs report may be exactly what Biden needs to push his stimulus agenda forward

The report amplified calls backing President Biden's $1.9 trillion stimulus plan.Visit the Business section of Insider for more storiesThe January jobs report painted a gloomy picture of the US labor market's recovery. And that could be just what the Biden administration needs to justify its $1.9 trillion stimulus package.added 49,000 nonfarm payrolls

For all intents and purposes, the labor market's recovery has fully stalled with 10 million jobs still lost to the COVID-19 recession, Claudia Sahm, a former Federal Reserve economist, told Insider. The disappointing data"underscores the need to go big" and do so quickly, Baharat Ramamurti, deputy director of the National Economic Council, said onOther officials rebuked claims that Biden's plan may have too large a price tag. Larry Summers, director of the NEC under President Barack Obama, said in on Thursday that Biden's $1.9 trillion package risks massive inflationary pressures and should be smaller.

To be sure, Democrats have taken several steps necessary to pass the president's proposal in the coming weeks. The Senate voted along party lines early Friday morning on a budget resolution

 

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