Congress recently passed the Build Back Better Act (BBB), which is projected to cost $1.75 trillion over ten years. The bill also includes $550 billion over five years for improvements to the nation's infrastructure and energy grids.
Jon Najarian, the co-founder of MarketRebellion.com says, “This $1.75 [trillion] is over ten years, but still, it's additional stimulus that will cause inflation to keep moving higher, and that's what Wall Street's worried about.”
According to Najarian, the Build Back Better Act is just another “accelerant that you'd be throwing onto this fire."
He further explains, "All of what we've talked about [un]til now is what has caused inflation to be running at 6.2%... producer prices are up and they're up more than expected. Consumer prices are up and more than expected, 6.2% year over year. I mean, big jumps."
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The BBB stimulus is mostly a green energy bill. Paid family leave, affordable prescription drugs, and Medicare for all have been stripped out of the package. “Most people would say that the economy is almost an unsinkable ship right now, but," he adds, “It will be painful when inflation picks up, it will be painful, but we'll get through it.”
How this bill affects the economy and its impact on inflation will play a pivotal role in the next election cycle, as the Act is one of the defining moments in the Biden Administration.
Watch the full interview now: