Is another stimulus package on the horizon? The Obama administration will not acknowledge its plans for this, but James Pethokoukis of Reuters says watch out for Stimulus 2.0 (or 3.0 depending on how you look at it) coming in January. In a blog today, Pethokoukis says the recently announced “jobs summit” to be held at the White House next month is likely to include planning for a second stimulus to be unveiled in Obama’s State of the Union address in January.
According to Alec Phillips of Goldman Sachs, conservative estimates of the dollar magnitude of the package would be $250 billion over three years. Pethokoukis says to look for more highway spending, more aid to state and local governments and a business hiring tax credit. He also suggests it won’t be labeled as a “stimulus plan” but will carry some other moniker instead.