larry summers publicly disagrees. and astrazeneca vaccine is being developed. this after early data suggests limited efficacy against the south african covid variant. ecb president christine lagarde hints at a soft exit from stimulus once a recovery takes hold. the morning, everyone and welcome to "bloomberg surveillance." i'm francine lacqua in london. let's check on the markets. that is where the action is in the reflation trade after we heard from janet yellen about what they are expecting from inflation and what we are hoping to see in terms of stimulus. the reflation trade continuing, global stocks hitting another record, brent oil topping $60. vaccine developers are working on a new shot to fight the south african variant of coronavirus. early data suggests the vaccine from astrazeneca and oxford has limited impact on mild disease caused by the mutation. a professor says the new shot should be ready by autumn. joining us, the director of research from bloomberg intelligence. great to speak with you. what can you

that is what larry summers has been worried about. ellen says she has the tools to deal with that if we were supposed to have this fast, quick inflation that summers says is quite worrying. manus: she says we are in a deep hole. one would expect larry summers to reflect back to 2008 and the scale. the scale of what is being posed by the height and now is six times the out gap. that is where larry has a problem. he says, spend this money, but be judicious of where you spend it, how you spend it. do not squander the capital that you might need. if it is not billed big and real. then it could be folly in the making. the bond market, that is manifest. 5% last year to just over 2% now. the alarm bells ring at 2.40. annmarie: let's get to those alarm bells. she is sounding quite stern on the tone for the need for this big stimulus support. >> i am afraid that the job market is stalling. we saw that in friday's employment report. we are in a deep hole with respect to the job market and a long way to dig out. manus: treasury secretary janet ye

larry summers, former obama top economic official.t's a bold plan and he's more concerned about undershooting than overshooting but $1.9 trillion is what he's concerned about given the current economic elements in the united states right now, basically what the output of the economy is versus what it could potentially be and says what the biden administration is putting into place would overshoot where they need to be by a significant amount. that could lead to overheating the economy and potential increase in inflation. the broader point larry summers is trying to make is if inflation goes up, you'll have to raise taxes and austerity comes into play and broader goals won't be possible in congress. why this frustrates the white house when i talk to white house advisers, as one put it simply, this is not stimulus. larry is looking at it as if it's stimulus. they view this as a broader perspective, as trying to essentially float the american population until the virus gets under control. not to stimulate the economy, float the economy a

. >> so, there's also this, larry summers in the op-ed does say he made the mistake of not going big enough back when the obama administration faced the massive recession and the housing crisis. talk to me now about the push back we're seeing from this white house on somebody who was a big part of the economic strategy the last time joe biden was in office. >> yeah. thank you for having me. great to be on with gene who was in the white house with larry during that period where the stimulus wound up being 800 billion, and he and others have acknowledged it wasn't big enough, not even close. and that the recovery that followed was too slow, too uneven, and continued a lot of pain for a lot of people. when i read that op-ed yesterday i was blown away by it given that larry has moved away from that idea of fiscal restraint in the face of crisis and has been much more progressive in his willingness to use deficits and spend whatever it takes. everybody is talking about lessons learned from '08 and '09. the biggest lesson is you can't go too big. you have to go shock and awe, particularly

, and also attitude by olivia blanche ard taking the side of larry summers.his is a moment of people asking your question we need answers. it is a huge package. it is the composition. what are you doing about public investment, what are you doing about sustainable growth over the long period beyond the next 12 months? why can't we target that? i think these are valid questions. tom: jason furman and austan goolsbee diving into the debate. rich miller framed it up. it is about the partition of income replacement, income substitution versus applying fiscal oomph to economic growth. you get into the dread phrase, medium term. jonathan: we saw some feathers ruffled over the weekend. jared bernstein snapped. we have a treasury secretary, it is janet yellen. how did they manage the message this week kevin:? it is a good point -- manage the message this week? kevin: is a good point. many familiar names coming to washington. the dust is settling from inauguration and there is a new type of political reality that their team has assimilated into. as they move forward,

but larry summers who you quoted , former treasury secretary, said six times too much.enators agree with that and they may over the next 48 hours better target this bill. the 1.9 trillion dollars is not accountable to the taxpayers and not accountable to the mission. it is only 9% dedicated specifically to getting the covid virus killed in getting the economy reopened. it is a broad wish list of policies that are not temporary, that are too broad and as larry summers says, approximately six times more than the economic out what gap indicates for 2021. caroline: congressman hill, let's take the other side of the argument from janet yellen, that it would be far worse to go to little than too big, particularly when the federal reserve is so committed to the labor market, to ensure those left behind in the previous recessions, it doesn't happen again. what about ensuring all boats rise? representative hill: thank you for that. we have the paycheck protection program extended, unemployment benefits ext and the 10 million jobs cap, that there is so much time through executive

larry summers has this op-ed, where he claims it is too big. what is going on here?nt: that was something of a flamethrower of an article that sent chills through the biden camp. they have responded forcefully to it. this idea of valor amount, there -- dollar amount, there is fear it could crowd out other initiatives down the line, for example, infrastructure. the other concern was inflation, but given rates are so low, economists, including janet yellen, are saying this is the time to go big, that we should be running up deficits when interest rates are low, a messe echoed by not just the biden camp, but jerome powell at the federal reserve meeting last week talked about the pain being felt by those unemployed and trying to get back in the workforce. the cost of that to the economy is significant and he says that is a bigger worry than inflationary concerns. anchor: absolutely. we will leave it there. a lot of people waiting to know when they will get that stimulus. alexey navalny was in court today, days after being jailed for 2.5 years in a fraud case, accused of

is far too large, but so have some democrats, including barack obama's former economic adviser, larry summers, who warned in an op-ed in "the washington post" that biden was at risk of going too big. an assertion biden's aides quickly rejected. >> larry got something importantly wrong, by the way, suggesting that the administration is being dismissive of any potential inflationary pressures. that's flat out wrong. >> reporter: wolf, of course, only third week of joe biden's presid presidency, he left the white house, going to dells to spend the next few days there. that's the first time he has been on that plane in a long time. when he was vice president, the president and vice president famously do not fly on the same aircraft because of the concern about security and line of the presidency, so there he is. first time on air force one as president. short flight to delaware, wolf, that's where he will be spending the next few days. >> watch the super bowl there sunday night like so many others. thanks so much for that. let's go to the republicans now. all of the ways the former president, don

>> tune in if larry summers is on the guest panel speaking.athan: there we go. >> take an early lunch. jonathan: great to catch up. thank you. from new york city, that is it for us. we will see you next friday. ♪ >> i'm mark crumpton with first word news. production of covid vaccines is ramping up. it will prompt doses administered across the united states to increase. vaccine supply is set to double in the next couple of months. the white house press secretary -- >> by the end of may, we will have 400 million doses. by that point, there will certainly be a larger swath of people eligible, who will be able to have access to the vaccine. in terms of when every american who wants a vaccine can get a vaccine, we will have enough doses by the end of july. mark: according to a bloomberg analysis in june, the number of vaccines delivered should rise to over 30 million a week by summer. that would be enough to give 4.5 million shots a day, almost three times the current total. in texas, the electric reliability council says it has returned to normal

it's not just larry summers. either.me thing they looked at the cbo numbers out monday and said that this $1.9 trillion could be three or four times as much as is needed. president biden clearly wanted to leave this process with the appearance of having been bipartisan without actually having been bipartisan. as mollie indicated, you had republicans one after another after another particularly in the senate who indicated a willness to work with the white house on this. they came with a specific proposal, which you do if you want to enter into good faith negotiations. all the while as this was happening, the white house was inviting the counter proposals but saying in effect we're going big. it's hard to imagine that they were really serious about real bipartisan throughout the entire process. >> bret: one last thing. mollie, i want to play this montage of soundbites from the cdc director jen psaki and dr. fauci. >> vaccination of teachers is not a prerequisite for safe reopening of schools? >> if we have the funding to d

stimulus, will we cause a runway -- a runaway repricing, rabid repricing in the bond market and larry summers says such a fire would be lit under this economy that you will be talking rate hikes in 2022. good morning, annmarie hordern. annmarie: good morning, manus and summers is saying the fed is not ready for a new error -- the new wrap on them. we will hear from jay powell on this debate. i like what stiglitz had to say. he's saying it is about automatic stabilizers. $1.9 trillion going into the economy, the economy starts to re-boost itself, then it won't end up being 1.9 trillion, so he's not worried at all, neither is krugman. manus: no, and krugman makes the point spend, spend, spend. let's take a listen. paul: in fact, spending on pandemic recovery generously is not a competing -- is not competing with a longer run program. it is a precondition for that wrong the run investor program. we need to get people back to work and through this with minimum damage and only then would we be in a position to go about doing the things larry and i agree we ought to be doing, looking past this year

doesn't help some notable people in the space, economists like larry summers, like oliver blanchard over the weekend, a warning that this type of package could lead to the u.s. economy overheating. definitely a topic we'll be discussing a lot more in coming months we're seeing that be reflected in interest rate yields. >> that multiply effect hard to determine in this unique situation. that's it for today's show i'm joumanna bercetche along with julianna tatelbaum. "worldwide exchange" icong nt.s mi >>> it is 5:00 a.m. at cnbc global headquarters. futures right now pointing towards a higher open following wall street's best week since november >>> red light. shares of hyundai and kia dropping in asia after the automakers say they are not in talks with apple to develop a car. >>> south africa will stop using the astrazeneca covid vaccine after they show it was not effective in preventing a variant of the

larry summers publicly disagrees. a new astrazeneca vaccine is being developed, this after early data suggests the product has limited efficacy against the south african covid variant. and ecb president christine lagarde hints at a soft exit from stimulus once a recovery takes hold. good morning and welcome to "bloomberg surveillance." i'm francine lacqua in london, tom keene in new york. come -- tom, are you ok? are you thinking about the reflation trade and how you can trade it in the second week in february? there is a lot going on? we look at covid-19, vaccines, astrazeneca, and what janet yellen said about the labor market. tom: i am trying to figure out who choreographed the weekend at the super bowl. i thought the choreography was just stunning, a triumph. we are getting over the super bowl. tom won, and you move on. francine: there you go, at 43 years old. let's get to first word news with ritika gupta. ritika: charter secretary janet yellen predict the u.s. can return to full employment next year, only if it

jonathan: former treasury secretary larry summers.im in the washington post this morning in an op-ed piece, a clinic on what he thinks could happen. it raises questions on the size of the package that the democrats and the new government are trying to push through. from new york city, good morning. we are 12 minutes away from a payrolls report in the united states of america. we have an equity market at all-time highs. we advanced about .4%. the bond market, bond yields, are coming with it. tom: let's talk to the right guest at the right time. lawrence summers clearly making a tone. glassman was in the crucible with robert gordon. he has a measured fuel for the limits of the american economy. jp morgan is out with a huge number. or hundred thousand-ish on jobs. jim glassman, you are optimistic on this report. why? jim: we were surprised this last time. these monthly numbers are very volatile. we don't expect anything good until we can lift restrictions on hospitality and get kids back in schools. that's coming in the next several mont

interestingly, this week there was an op-ed by larry summers in "the washington post" who actually gaveident biden and his team that this was maybe, you know, this plan, this $1.9 trillion plan is risky both in terms that it might stoke inflation. the economy's had a huge amount of stimulus. the government's taken on a lot of debt in the past year, but it might threaten their own big plans for an even larger project later in the year when they want to do their build back better, big infrastructure plan. how much do you think there is going to be internal debate within the democratic party about the merits of this plan, of what it might -- how it might impact their ability to do stuff in the future? >> gerry, i don't think there's a whole lot of divisions because they want to help joe biden pass his first big initiative. but i think there's concern, private worry that if biden doesn't reach out to republicans, doesn't get any republican support and then the economy, you do see some long-term inflation or you do see, you know, the eshoo of not being able to spend on priorities that biden

out of the economic crisis or is this too much, as even a usually sympathetic commentator like larry summersver—correction? or do you think this is what's needed? biden's mantra is that you cannot spend too much, and so you saw yesterday the house of representatives passed his stimulus bill, 1.9 trillion, which outlines these cheques which will go out to tens of millions of americans worth $1400. an extension of the top up in unemployment benefits, 350 billion in state aid to local and state governments. 200 billion to the schools. and lots more money for the vaccination programme. so i think biden is coming at this learning the lessons from the aftermath of the financial crisis, when of course 0bama passed the stimulus package which was about half this size. in retrospect, many economists believe it was too little and that growth was sluggish, and that if they had come out bigger the recovery would have recovered more quickly. i think that is very much on the top of his mind. of course, the concern, like it was during the financial crisis, is that all of this money, this gush of money, coul

interestingly, this week there was an op-ed by larry summers in "the washington post" who actually gave to president biden and his team that this was maybe, you know, this plan, this $1.9 trillion plan is risky both in terms that it might stoke inflation. the economy's had a huge amount of stimulus. the government's taken on a lot of debt in the past year, but it might threaten their own big plans for an even larger project later in the year when they want to do their build back better, big infrastructure plan. how much do you think there is going to be internal debate within the democratic party about the merits of this plan, of what it might -- how it might impact their ability to do stuff in the future? >> gerry, i don't think there's a whole lot of divisions because they want to help joe biden pass his first big initiative. but i think there's concern, private worry that if biden doesn't reach out to republicans, doesn't get any republican support and then the economy, you do see some long-term inflation or you do see, you know, the eshoo of not being able to spend on priorities tha

interestingly, this week there was an op-ed by larry summers in "the washington post" who actually gaveident biden and his team that this was maybe, you know, this plan, this $1.9 trillion plan is risky both in terms that it might stoke inflation. the economy's had a huge amount of stimulus. the government's taken on a lot of debt in the past year, but it might threaten their own big plans for an even larger project later in the year when they want to do their build back better, big infrastructure plan. how much do you think there is going to be internal debate within the democratic party about the merits of this plan, of what it might -- how it might impact their ability to do stuff in the future? >> gerry, i don't think there's a whole lot of divisions because they want to help joe biden pass his first big initiative. but i think there's concern, private worry that if biden doesn't reach out to republicans, doesn't get any republican support and then the economy, you do see some long-term inflation or you do see, you know, the eshoo of not being able to spend on priorities that biden

he said firmly no and went in to delve on a point by point takedown of why he believes larry summers is wrong in his criticism. at the core of the argument here that you heard from jared bernstein and hearing from biden administration officials, chuck, is that the economic crisis, the covid crisis is so deep there's a real failure just getting an announcement overhead, apologies. >> i got you. >> but the crux of the argument is that if the biden administration does not go big enough that the issues within the economy are going to go unaddressed and ignored. ultimately it is a crisis that will deepen. that's their argument. that's the argument that you heard him make from the podium, jen psaki reiterated that argument as well. but one point that is worth noting, chuck, remember, they are very mindful of what happened during the obama administration. that during that 2009 stimulus package, that was criticized for not being big enough. and that was the product of long negotiations with republicans. so what you have here is president biden going it in a very different way. >> right. very

plus the white house defending its $1.9 trillion stimulus bill as a top economist larry summer says the plan is too big. tonight he's out front. >>> and breaking fuse lou daubs tonight the most watched on fox news canceled. let's go out front. good evening. i'm erin burnett. and we begin with breaking news out front tonight. president trump weighing. >> let's turn to president trump's impeachment trial. if you were still a senator would you vote to convict him? >> look, i ran like hell to defeat him because he was unfit to be president. i watched what everybody else watched, what happened when that crew invaded the united states congress. but i'm not in the senate now. i'll let the senate make that decision. >> let me ask you then something you do have oversight of as president. should former president trump still receive intelligence briefings? >> i think not. >> why not? >> because of his erratic behavior unrelated to the insurrection. >> i mean you've called him an existential threat. you've called him dangerous. you've called him reckless. >> yeah, i have. and i believe it. >> what'

larry summers. >>> today we remembering george schultz. the longest secretary of state who died over the weekend after turning 100 years old in december. he's one of two people to have had four cabinet posts. he said his best job is top diplomat with ronald reagan. he returned to stanford university's hoover institution after leaving government. promoting arms control, fighting against climate change. joining me is one of his very good friends. you were russia expert before you were secretary of state. >> george influenced so many people in his 100-year consequential life. he did say being secretary of state was his best job in government exception for being a captive in the marines. he served his country. he's patriot. people who knew him in diplomacy knew him as always looking for solutions. when he came back to stanford, it was climate change that really got his attention and he learned the science and he learned the technology and he brought his economic and political instincts to it. a lifelong learner. great mentor to so many people

jay powell or larry summers? caroline: we agree. it's a normalization of bond yields.hey've been abnormally low. we think that bond yields will rise a little bit more over the year. another 20 basis points or so. it's not because inflation is running away. it's because we are finally able to realize the economic recovery post pandemic. for us, it's an encouraging sign. in terms of the speed, we have already seen the bond yields rise over 50-- growth and inflation. you want to be in the physical sectors. those are our preferences. we have a preference for areas such a small caps. we are positioned for an increase in the bond yields. our forecast is below 1.5 for the year-end rather than the numbers you mentioned. annmarie: what number would where you? caroline: it depends very much on what's going on at the time. i don't think you could pick one specific level. the reason for why the gilt is going up and what it's responding to in terms of inflation, growth, employment are all factors that need to be considered. i don't think you can give a number in isolation. historic

larry summers says the package is too big. he's calling on d.c.o go big and pointing to the figure that the economy still needs fiscal support and remember, we had this a debate on inflation. powell says he's not worried about inflation. the fed is going to let inflation run hot. manus: exactly. to finish off the sentence, everybody has to run that piece that says we are still far from a strong labor market. go on and play the rest of the language. the benefits are broadly shared and this is the narrative, and the reason is the evidence. black americans, unemployment was 9.2% in january versus 5.7%. there is the point. the queen of charts has got it. its repricing by the market of when the fed might go -- it's not next week, not next month, not this year. fourth quarter 2023, but herein lies the point. this is about u.s. exceptionalism. that is still versus the ecb. the ecb is 2024, so the market is already beginning to say that is real yield. now, when might you need to reprice the fed? annmarie: i like that point you brought up, manus. mohamed e

yousef: one of janet yellen's predecessors, larry summers my is raising the red flag on some of these steps. a key quote that emerged, he writes, if there is a chance macroeconomic stimulus closer to world war ii levels, normal recession will set off inflationary pressures of a kind we haven't seen in a generation. it may be more difficult -- now than in the past. agree or disagree? >> certainly, we are looking at forward indicators in last week's u.s. spike in numbers. in terms of the prices paid subcomponent of the index, it is certainly suggesting the upward trajectory suggests that you do have i guess some fairly meaningful headlines in cpi increases in the u.s. coming through in the next 3-6 months. i think what the fed and janet yellen are more focused on is how sustainable the increase will be in terms of, given the underlying capacity in the u.s. economy. it may be the case that obviously, wage pressures still remain contained as the unemployment rate is still likely to be some distance away from the long-term equilibrium rate. in that sense they are not likely to be that fear

larry summers put a piece in the "washington post," and all of the sudden it is too big.om: illiberal economist to his way on front on this -- a liberal economist who is way out front on this, says plus 9% gdp is a whopping 13% of gdp. that is a big number. jonathan: equity market, all-time high across the session yesterday. just a mild pullback on the s&p this morning area out about 0.1% , still 3900. in the fx market, euro-dollar back through $1.21, up by about 0.5%. yesterday session, just south of $1.20. tom: i know we've got to get to our esteemed guest. the russell 2000 on a log basis has got little league curvature. it is a little convex up. jonathan: small caps to the moon . in november, when a lot of the outlooks were written for 2021, 3800, 3850 was bullish. we've had almost a 20% move since the end of october. tom: howard ward yesterday flat out said 4400 spx. that is new statistic. lisa: we have to mention the fact that junk bond yields fell below 4%. jonathan: lisa, we were getting there. we were getting there. lisa: but carry on. tom: jon and i on purpose we

jonathan: from your perspective, it sounds like you would be in the camp of larry summers.than: i agree they are pushing too hard. i think that we need -- i would love to see what the economy looks like two quarters from now when we are reopened and people have been vaccinated, the service sector is coming back, and then you can figure out whether you have done enough or not. that does not mean we do not need any fiscal stimulus. we need to address the most important parts of the economy, but giving stimulus to the people who are doing well only goes into bank accounts and comes out the other end when the economy recovers. tom: what is your gdp call 12 months forward? ethan: we have growth this year of 6%. the consensus is 4.1%, so the consensus has catching up to do. we have 4.5% growth next year, but that is based on our assumption that only half of the $1.9 trillion would actually be enacted. if the whole thing gets enacted, we are going to have to revisit those numbers. by the way, that is the fastest growth since 1984, coming out of a massive recession in 1982, so we h

larry summers, i play part of his sentiment yesterday, the fed will be in serious repricing mode in 2022. we have got powell out this week, will keep back against that narrative from summers? >> i think they are going to look very clearly at the data, because it really is what is happening on the ground that will determine policy and not the other way around. if you look again at the rollout of vaccinations, very impressive and i do not think we would have thought by summer this time this year in the u.s. potentially could be fairly reopened. we could also see more fiscal stimulus coming, and if you think about it, the u.s. consumer is set up to spend, and given that the economic reopening could be happening soon, additional u.s. fiscal policy and fairly ongoing easy monetary policy, if you look the u.s. consumer is it a good position, those who have a job and ability to spread our aching to spend. manus: aching to spend, that is the point some people are worried about. there are a number of the concerns as we get into the start of the year, short dollar, long emerging-market, long emerg

larry summers publicly disagrees. and astrazeneca vaccine is being developed.ts limited efficacy against the south african covid variant. ecb president christine lagarde hints at a soft exit from stimulus once a recovery takes hold. the morning, everyone and welcome

larry summers was an economic advisor of president clinton, president obama. he was a treasury secretary that really gets it now. he is understanding look it, don't go too far. make sure you get the goldilocks type of position. i got to tell i think he is on to something here and there are republicans that want to work with president biden, that want to come up with a targeted package that can be reasonable and give relief to our fellow americans that we need. that is where we need to be smart. don't worry about the politics. we're in a emergency. we're in a crisis. let's work together. gerry: thanks, congressman. looks like democrats are split on key elements of the covid relief plan including who should be eligible to get the checks. bernie sanders for example, says he opposing cutting income gap for the 1400-dollar stimulus. listen. listen for a second. >> from a political point of view it is absurd to be telling working-class people, somebody has a decent union job, making 55, $60,000, sorry, you're not eligible for the program. makes no sense to me at all

larry summers has been saying the market is too hot, and economy too hot. can the fed that pushed into raising rates by market action? >> you know, it might be. this is what i am curious about and i wish someone would have asked john williams. what is the breaking point? what is the outline where they get too high, and they have to come in and do something for the market? watching the fed and how they react to markets over the years, i feel like they have a tendency to be more reactive than proactive. so no one knows. this is the problem. this isn't their priority. their priority is looking at that unemployment rate, real unemployment somewhere around 10%, so they have not given us a lot. there is an interesting piece by my colleague in london who talk to us strategist at mizuho, and he is saying the five year yield is keeping him up at night. he thinks the way at shot up, 75 basis points yesterday, that implies more tightening in the market, and if you're the fed, you don't want more tightening if you are relying on near zero rates. romaine: you talked abo

[laughter] there is the cfrv, and larry summers who published this piece on this very issue. he was a top official in the last two democratic administrations. he has this warning -- warning, there is this argument to be made the economy is already getting back on track. if you look at savings data at the household level, even weekly jobless claims -- they are still elevated, but they are improving. you have these signs the economy is slowly recovering and if you shovel too much money into the economy right now, you will get that inflationary effect. we are in a different position. i would go back to the labor market, the engine of consumer spending. that is still down in the dumps. we hear all the time about the hunger a car's the country -- acrossountutilities being shut off, this is not a sign of things getting better. romaine: we will see how it shakes out. coming up next on the show, we are sticking with stimulus. from biden to romney. rising support in washington to tackle america's worsening child poverty crisis. we break down the proposals from both sides of the aisle.

larry summer is a liberal democratic, a keynesian in favor of big government spending, and he's saidis way too much. so there's a lot of reasons. we could go through it line by line. so much money has already been allocated for these things. >> let me ask you. you say how the economy has improved, and the economy has improved, but the u.s. is still down 10 million jobs since the pandemic began a year ago, jobs growth is crawling. only 49,000 jobs added in january. it's really bad with 400,000 americans taking themselves out of even looking for jobs. 24 million americans don't have enough to eat. the cbo says it will take until 2024 to fully recover without sizeable relief. how do you explain your opposition given those facts about millions of struggling americans? >> so all of those things -- i mean, we've allocated money for these purposes, and by the way, cbo is projecting we'll have almost 5% growth next year if we don't do an additional bill. we have tens of billions of dollars that hasn't made it out the door yet because the ink is hardly dry on the last bill. what this is is it

. >> reporter: the president is other corner, larry summers, who was a top obama economic adviser warning that the biden's plan costs too much and could hurt the economy. >> is the biden administration going too big? >> no. i would disagree with that and the risk of doing too little are far greater than the risk of doing too much >> biden making news on whether or not former president trump should receive intelligence briefings? >> reporter: that's right, mr. biden tells cbs news president trump should not receive intelligence readings due to his erratic behavior >> kristen, thank you. >>> 24 hours, a freshman republican congresswoman is speaking out here is peter alexander with that. >> reporter: tonight after being booted from her house committee assignments. >> you know what they did? they stripped my district of their voice. >> if i was under the committee, i would be wasting my time because my values would not be heard and neither would my district >> reporter: that move coming out, greene endorsed biden and promoting conspiracy theories which she no longer believes >> i am sorry for

former treasury secretary larry summers disagrees. plus, asia is not leading the global demand recovery. we discuss with a chief economist ahead of the lunar new year holidays. this is bloomberg. so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. ms. yellen: this package is going to speed recovery, anil will analysts with moody's and others working with the institution show very clearly that we will get people back to work much sooner with this package, and that is really critically important. there is absolutely no reason why we should suffer through a long, slow recovery. mr. summers: in any way, appropriate, and i look at the fiscal stimulus under dis

real fears even among the some prominent democrats such as former obama top economic policymaker larry summersthe scale of the package may just be too large. now, all of this fits with the clear signals that biden has sent that he mans govern as though he has a mandate for a significantly hard-left turn for the country. how is this happening? well, the answer lies in part with the condition of the republican party. in the wake of president donald trump's electoral defeat and the loss of senate control, the gop's in a state of civil war. the divisions were on full disthrough play this -- display this week. on wednesday the caucus voted to keep liz cheney as the party's number three official in the white house despite an effort to oust her after she had supported the president's impeachment. the next day 31 republicans -- 11 republicans joined all the democrats in voting to oust managerially taylor greene -- marjorie taylor greene for delusional conspiracy theories including the idea, for example, that the u.s. is run by a cabal of satanist pedophiles. now, the congresswoman herself told colleag

interestingly, this week there was an op-ed by larry summers in "the washington post" who actually gavehis team that this was maybe, you know, this plan, this $1.9 trillion plan is risky both in terms that it might stoke inflation. the economy's had a huge amount of stimulus. the government's taken on a lot of debt in the past year, but it might threaten their own big plans for an even larger project later in the year when they want to do their build back better, big infrastructure plan. how much do you think there is going to be internal debate within the democratic party about the merits of this plan, of what it might -- how it might impact their ability to do stuff in the future? >> gerry, i don't think there's a whole lot of divisions because they want to help joe biden pass his first big initiative. but i think there's concern, private worry that if biden doesn't reach out to republicans, doesn't get any republican support and then the economy, you do see some long-term inflation or you do see, you know, the eshoo of not being able to spend on priorities that biden has been talking

even larry summers mentioned the potential of biden's $1.9 trillion plan for inflation.he main basis for the economists expecting inflation to be tamed is the fact that you still have high unemployment and still have the labor market lag. powell really leaned against the idea that the economy might overheat with additional stimulus earlier today. romaine: i want to stop and take a quick listen to what powell said on that point. mr. powell: there could be upward pressure on prices. again, my expectation would be that that would be neither large nor sustained. we are looking at actual inflation. romaine: embarq, largely -- and look, large inflation seems to be -- everyone knows i'm inflation truther, but you solve bill dudley talking about driving up prices. adding about half a percentage point just because of the way the comparisons shakeup. is there any reason to believe that the long, sustained part that powell is focusing on could be long and sustained if the short-term issues don't really had?-- rear their head? reade: it could be, but that is one of those things we a

and larry summers and jason furman.the president, we do not need this . and as you mentioned, the economic into is really encouraging. and nurses bizarre distance in washington where we will get a good number reported from the biden administration. and the president of biden will give a very depressing bleak look about a future. in a good example is that reports last week, 6.6 million job openings in december. this is historically a huge number. larry: by the way, hate pessimism . with facts, - we'll have enough time today. i'll get larry summers or jason furman to come on . to friends, and economists . and what happens when the music stops. do you know what, i mean. what happens when we stop putting in trillions. i don't have too much time but some point the music is going to stop. and then what. liz: and then the feds start to tighten and watch out below. we have been through this before. at some point, they're going to have to cut off the money supply is when the area. inflation is the big risk here . larry: okay wil

former clinton treasury secretary larry summers penned an op-ed arguing the biden rescue package might be too big. but several top democrats from across the ideological spectrum jumped in to defend the plan, including brian schatz who said why would we listen to the economist who said we went too small last time. speaking earlier today, jared bernstein, a member of the white house council of economic advisers said the risks of doing too little are far greater than the risks of going big. thank you so much for coming on the show. joe biden said better to go too big than too small. where is that coming from? >> it's coming from a lifetime of lessons in politics and, yes, when he was vice president he was the implementer in chief of the recovery act. he's been to this rodeo before. i think probably the biggest motivator, though, every economic shock, recession, they're all different. and i think what's really motivating the president is the steep, steep cost of inaction against this dual crisis of the pandemic and the economic damage that it's done. damage that's not been felt equitably a

and if you read larry summers' editorial in the "washington post" this past week, it may be that this $1.9 trillion will make things worse, and i think that has to be a concern. >> let me ask you this, do you think we went too small in '09 or too big in '09 with the stimulus? >> i think we got a goldilocks just right. the congressional budget office is saying that because of the $900 billion that was on a bipartisan basis negotiated, there will be 3.8% gdp growth in 2021. now, when you have 3.8% gdp growth, which is, like, more than we've had for quite some time, coming out of a pandemic, you've done something right. and so, i actually think that we got it pretty good. >> your proposal, by the way -- you are one of the senators that has been fighting hard to get aid to state and local governments, one of the few republicans that have joined some democrats. this counterproposal of yours did not include state aid. and you have said, look, it is hard for you to get -- my guess is, you couldn't get ten republicans to join you, if you did. if that is the issue, how do you come to a bill wh

when you look at the report, larry summers, democratic administration, wrote an op-ed piece saying he thinks it is too big where it is. it is clear the current secretary disagrees, it's clear the president disagrees. when you look at the jobs report, it's not just about the month-to-month tumult in the country. we focused on the first time unemployment filing, but there are a boatload of people on persistent long-term unemployment that tells you the economy is in a ditch. >> yeah. every month i get more concerned about the internals of all these monthly numbers and the high frequently numbers, to be honest. it just doesn't look good. you have millions of americans who are not working and don't have a job. you have almost 18 million americans who are surviving on some sort of jobless benefit, so there are whole industries that have been sidelined, and that's something the secretary janet yellen pointed out. we've never been through this. the economists are saying this has to do with the vaccine and the virus right now. this isn't as much about shutdowns as it is about vaccines and the

>> as far as the economists it is very striking, larry summers, jason furman, steve rattner, leadingights of the obama economic team, saying polite ways joe, we don't need a package this big. it is not 2009. the economy is in pretty good shape. that relates to the second question how are markets reacting. you've been talking about a very strong earnings season. i think consensus which i share is that this year is set up to be pretty strong economically if washington policy doesn't get in the way. so, i think you have a lot of very strong economic facts. you have a hospitalization numbers on covid that peaked two weeks before inauguration day. so the trends are all very positive regardless of what they're debating in washington. connell: that's a fair point. on the minimum wage, i don't know, as blake says not sure whether it gets in or not. they seem more optimistic than they were last week. amazon came out supported it for what it is worth, going up to 15 bucks an hour nationwide would be a good thing for business. they're already at $15 in their private business. we did have the cb