There is much debate concerning phase 4, or another coronavirus stimulus bill. The discussion has centered around how the money from the first three phases has been spent.
Senator Pat Toomey (R-Pa) recently had an interview with Yahoo Finance. He said there that they have directly appropriated $3 trillion. Moreover, Toomey added that with the Fed’s lending power added in, the U.S. government has around $6 trillion in spending power. Additionally, most of it is not out of the door yet.
The Federal Reserve’s impact has not yet been fully felt in the economy has not been fully explored in the marketplace. Thus, Toomey is right in some sense. Nevertheless, the money already sent to other areas is long out the door—for example, $1,200 checks sent to Americans and some forgivable loans to small businesses.
Washington passed a series of bills over a remarkable few weeks in March. The bill included an $8 billion phase 1 deal that signed into law on March 6. A couple of weeks later, there was a slightly larger phase 2 deal. Then came the mammoth $2 trillion phase 3 deal that became law by March 27.
Moreover, in additional funds for hospitals and business loans, another $484 billion went out the door in April.
Later this summer, the United States President Donald Trump has pushed for another measure. Meanwhile, Mitch McConnell, Senate Majority Leader, has taken a wait-and-see approach to draft the bill.
Joe Biden is a Democratic presidential candidate. He wants to act sooner. The former vice president addressed Trump directly in a speech last week. He asked him not to let the support from the CARES Act expire next month. This is because people are still hurting.
Moreover, the representatives of the Democratic-led House passed a bill in May. This law was the HEROES Act. It had a price tag of $3 trillion. Nevertheless, the Senate is unlikely even to consider the legislation.
The Trump administration often touted how many of their relief programs ran in record time.
Steven Mnuchin is Treasury Secretary. He recently said that 159 million checks, worth more than $267 billion, had been sent out. The money went to every American that the IRS had information on file. Around 12 million people have not gotten their cash, however. Moreover, they may be under the risk of never getting it unless they log in and then send their information to the IRS.
A range of Democratic figures included former presidential candidates like Sen. Kamala Harris, Rep. Tim Ryan, and Andrew Yang. They all have pushed for more checks. One idea is to pay directly as often as every month during the pandemic. A failure to send more checks might create a cascading effect of severe decline and lock us into a deep depression or a recession. This is according to Ryan.
Republicans are skeptical of such plans. Recently, Mnuchin promised that they are going to seriously look at whether they want to spend more money more directly or not. Nevertheless, he added that his focus is on initiatives.
let us see what will happen in the United States.