Larry Kudlow, who was the Trump administration's Director of the National Economic Council, warned on Thursday that high inflation could be permanent if Biden's plans are passed. 'If Uncle Joe Biden gets his green worker paradise, Soviet-style Bulgarian economic policies, massive tax increases, massive social spending, destroying the fossil fuel energy sector, then the dollar will collapse and leaping tax rates will choke off economic growth,' Kudlow said on his Fox News program. Joe Biden's $6 trillion budget plan has already sparked major inflation fears given it is set to boost federal spending by 25 percent, which is the highest since World War II.
'Call it the 1970s with a socialist spin. In that case, we will have permanently higher inflation. And we will have weaker and weaker economy.'
WSJ: Enter the Financial Stability Oversight Council (FSOC), which Congress established after the financial panic. Mr. Biden directs Ms. Yellen, as FSOC Chair, to consult with other regulators to make institutions disclose how they account for climate related-risks, including those caused by government policies. The discretion here is broad, and expect it to be used. Banks, insurers and asset managers may soon be required to disclose, justify and perhaps write down the value of their fossil-fuels assets.
Mr. Biden also wants to enlist the trillions of dollars in American retirement accounts for his climate agenda. He directs Labor Secretary Marty Walsh to “identify agency actions that can be taken under the Employee Retirement Income Security Act of 1974 . . . to protect the life savings and pensions” of Americans “from the threats of climate-related financial risk.” Translation: Retirement fund managers will soon have a fiduciary duty to reduce CO2 emissions and promote green energy.
President Biden on Thursday signed an executive order directing several federal departments and agencies to analyze the risks climate change poses to the U.S. financial system and federal government, the White House announced.
“We know that the climate crisis, whether through rising seas or extreme weather, already presents increasing risks to infrastructure, investments, and businesses. Yet, these risks are often hidden,” the White House said Thursday.
Gauging and managing the financial risks and economic impacts of climate change has been a pillar of the Biden administration’s environmental policy. Under Treasury Secretary Janet Yellen, the department has begun developing a “whole-of-economy” strategy meant to clear a financially stable and economically productive path to carbon neutrality.