Despite the encouraging words yesterday from Federal Reserve Chairman Ben Bernanke and the White House for a new economic stimulus package — it’s not going to happen this year.
Congressional sources say that House Speaker Nancy Pelosi will not accept the likely White House price for approving a stimulus bill — passage of the Colombia Free Trade Agreement.
Obama allies want to save the package — especially accelerated tax cuts and new infrastructure investment — for his signature in January. Senate Republicans will still have the votes they need to filibuster the kind of expansive legislation — $150-300 billion — that Democrats have discussed.
All that adds up to more gridlock during the lame duck.