07.27.20 - No longer an echo swirling around in the rumor mill, another Trillion Dollar+ booster shot is set to be injected into the US economy. The Senate is preparing to propose another Trillion Dollar coronavirus relief bill later today. Legislators are eager to reach consensus on a bill as Federal unemployment supplements end later this week.
Both parties with vastly different ideas about what another relief bill should look like have just a few days to reach a compromise on a bill to then be sent down to the house. The Republican-controlled Senate is set to introduce a proposal opening up a table of political gamesmanship to shift the blame onto the Democrat-controlled House of Representatives fails if House Democrats fail to pass their version of a bill before the end of the week. Nancy Pelosi and Mitch McConnel are so far from the Same page, they’re not even reading the same book. The Republicans are floating the prospect of roughly $1T in relief, while Pelosi and House Democrats want another $3.5T.
The House Democrats want to extend unemployment aid through January 2021, while Senate Republicans believe this move could disincentivize Americans from jumping back into the job market and slow down the path to recovery.
Economists are concerned that if Congress doesn’t pass an adequate relief bill the economy may fall into further disaster. “If Congress fumbles this, it’ll be a pretty big setback for the economy,” says J.P. Morgan’s chief US economist, Michael Feroli.
Source: Brookfield Brief