Larry Kudlow says the developing situation in Afghanistan could cloud talks of economic reform.
"The question is how do the politics play out on the floor of the two houses?" Kudlow said during an appearance Sunday on "The Cats Roundtable" radio show on WABC 770 AM, hosted by John Catsimatidis.
"I think it's going to be a tough battle. Afghanistan is not going to help that, but I think the battle will be joined mostly on the debate about the domestic economy. If you're growing the way we are and you have inflation risks, why do you want to launch another spending orgy?"
In the week or weeks ahead, Kudlow warned that the passing of the $3.5 trillion budget reconciliation bill and the $1 trillion infrastructure bill has the potential for "excess spending, excess inflation, and high taxes, which will do great damage to the economy."
On Saturday, House Speaker Nancy Pelosi released a "dear colleague" letter detailing that the House of Representatives is "hard at work" to pass the infrastructure and reconciliation bills.
"The House is hard at work to enact both the Build Back Better Plan and the bipartisan infrastructure bill before October 1st, when the BIF would go into effect. Further, the uncertainty of the delta variant insists that we move expeditiously," she stated.
But Kudlow has doubts whether the House could pass such bills.
"You have some moderate, pro-business Democrats in the House…," Kudlow states, "without Afghanistan, they have been leaning against the budget resolution because there are too many taxes and too much spending … A lot of Democrats [are] up for reelection in tough marginal districts. They are going to distance themselves from Mr. Biden.… I think Pelosi does not have the votes right now to get infrastructure [passed] before reconciliation, or to get the reconciliation bill at all."
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