Millions of Americans are grappling for months with the economic fallout of the coronavirus pandemic’s economic fallout. They have been pinning their hopes on Congress to deliver another round of financial relief, including an extension of enhanced unemployment benefits and direct cash payments. Nevertheless, the door for such assistance may remain open. Last week, President Donald Trump slammed shut such assistance only for him to nudge it ajar later that day.
According to White House economics adviser Larry Kudlow, Mister Trump backed a revised stimulus package. Nevertheless, Kudlow did not provide specifics concerning the relief plan. But he noted that it would likely include stimulus checks and aid for the ailing airline industry.
Kudlow said that he does not want to walk through the details. It is because Speaker Pelosi and Treasury Secretary Steven Mnuchin will be on the horn this afternoon.
That is a reversal from the United States President Donald Trump’s position earlier this week. He pushed for a more limited series of separate measures: $135 billion in fresh loans for small businesses, stimulus checks, and the $25 billion in aid for airlines. Last week, House Speaker Nancy Pelosi championed a broader $2.2 trillion package by Democrats in the lower chamber. On Wednesday, she scoffed at the idea of the president of targeted relief.
Trump and Stimulus Package
Pelosi said on ‘the view’ that it is hard to see any sane, clear path in anything Mr. Trump is doing.
Economists warn that failing to inject another dose of fiscal stimulus might stall the recovery, given the economic headwinds and the ongoing pandemic. Job growth in the United States is slowing. It is because big businesses continue to lay off workers. For example, the airline industry this month cuts tens of thousands of jobs.
Gregory Daco works at Oxford Economics. He is chief United States economist there. So, Daco noted that without increased fiscal aid or faster job growth, state and local governments, businesses, and households would be increasingly susceptible to a deterioration of the health situation.
Wall Street analysts talked about the odds of reaching a compromise on either a more limited measures, such as stimulus payment, or a broad package. It was before Friday’s negotiations. Analysts said that odds for such a compromise before the November 3 election were dwindling.
The Paycheck Protection Program offers low-cost loans to small businesses. Nevertheless, Replenishing such a program is unlikely because lawmakers in both parties want to add additional measures to such a bill.
