Looks like the Obama team is dismissing the number, as well as even lower numbers. And I know that this news will make Keynesians like Krugman and Reich extremely nervous.
Some outside economists have pushed the trillion-dollar figure. One recent report suggested the transition team was working with an $850 billion plan. But this official describes the amount Obama advisors are currently considering as significantly lower than both.
Obama and his economic team met for four hours yesterday. They are still working on the package, which will not be announced before the president-elect returns from Hawaii later this month.
Perhaps he knows if he asks for a trillion in stimulus, there will be no political will for healthcare reform or any of his other agenda items?
More as it develops…