In the coming week, the administration of Trump wills to send direct cash payments to Americans. It is to help them to cope with the economic ravages of the coronavirus. Steve Mnuchin is the Treasury Secretary. He said on Tuesday that part of a massive stimulus package takes shape between the Capitol Hill and White House.
After meeting with GOP senators, Mnuchin told reporters on Capitol Hill that the overall price tag of the package might be around $1 trillion. It will be making it one of the most extensive federal emergency fiscal packages ever assembled.
Mnuchin also gave a dire warning if they failed to act. He said that the rate of unemployment might spike to nearly 20 percent from the roughly 3.5 percent level it hit in February. It is according to three people familiar with his comments. They spoke under the condition of anonymity to reveal internal deliberations.
Thus, the stimulus planning news sent the industrial of the Dow Jones average up more than 1,000 points Tuesday. It was because it recovered some of its losses from Monday.
While the coronavirus pandemic has upended the everyday life for many Americans, the scramble for a deal comes. On Tuesday, North Carolina’s Outer Banks officials were taking steps for the beginning of the restrictions for visitors and tourists. It is to limit permanent residents’ exposure. The area of San Francisco begins to ask residents to stay home. Moreover, it is the tactic which officials of New York are studying. Marriot International is the world’s largest hotel brand. It began furloughs to affect tens of thousands of employees.
Americans and the Economy
All in all, parts of the economy appear to be in free fall. Layoffs are mounting each day. Industries such as restaurants, hotels, and airlines are pleading for relief. On Tuesday, the United States recorded its 100th deaths from the virus. Reported in 24 hours, there were also more than 1,000 new infections reported. It is the highest number so far.
Officials of the White House have shifted gears in the past day, after initially proposing a big tax cut to help the economy recover. They now appear to be backing up the idea to send immediate payments to millions of Americans. They believe this will help Americans pay bills in the coming week, and would quickly inject cash into the economy, instead of spreading any savings out over time.
On Tuesday, Mnuchin told reporters that they are sending checks to Americans immediately. And he means that now, in the next two weeks.
The Bloomberg News was first who reported his warning about the unemployment rate spike.
Monica Crowley is the Treasury Department spokeswoman. She was asked about the comment she said that Mnuchin used several mathematical examples to illustrate the purposes. Nevertheless, he never implied that would be the case.
When the economy appeared to be growing at a steady clip, two months ago, such measures would seem unthinkable. Nevertheless, as coronavirus cases began the closures and disruptions and spreading in the United States, all things changed.
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