Many Americans need a second stimulus test and a new coronavirus mitigation plan. With the resumption of stimulus negotiations in Congress, President Trump called for the immediate enactment of a “large and concentrated” stimulus bill. At the same time, several analysts have predicted when lawmakers will pass the next stimulus plan.
Stimulus plan status
After the presidential election, stimulus negotiations have resumed, but lawmakers have still failed to reach an agreement. This makes Americans almost hopeless to accept the second stimulus check to help them cope with the economic crisis triggered by the coronavirus.
After the election, House Speaker Nancy Pelosi continued to push for her $2.2 trillion revised “Hero Act”, and according to reports, the White House has withdrawn from negotiations on a new stimulus package. Before the election, Treasury Secretary Steven Mnuchin discussed the stimulus plan with Pelosi almost every day, but the two failed to reach an agreement. Now, the Senate Majority Leader Mitch McConnell (Mitch McConnell) resumes the dialogue with Pelosi.
President Donald Trump has promised “a massive stimulus package immediately after the election” and has been busy with the results of the campaign. Nevertheless, he posted a tweet on Saturday:
Congress must now enact a complete relief bill. The support of the Democratic Party is needed. Scale up and focus. Finish it.
Before the election, the White House and Pelosi had agreed that the next stimulus plan would include a second round of stimulus checks for Americans.
McConnell admitted on Thursday that a further aid package was needed, but continued to reject the Democratic Party’s $2.2 trillion stimulus plan. He proposed a much smaller $500 billion package that was blocked by the Democrats in the Senate before the election. McConnell’s bill does not include $1,200 paid directly to individuals.
Speaking of Pelosi and Senate Minority Leader Chuck Schumer, McConnell said: “I think she and Senate Democratic leaders are still looking for bigger goals. I don’t think that is where we want to go.” He elaborated:
But I do think that another package is needed. I hope we can overcome the current stalemate over the past four or five months and take appropriate actions seriously.
Nevertheless, McConnell insisted that the next stimulus plan should be similar to his $500 billion stimulus plan, emphasizing that the bill needs to “highly address the remaining issues.”
At the same time, Biden discussed stimulus relief assistance with Pelosi and Schumer on Thursday. Agreeing that it is necessary for the three economic stimulus plan before the president-elect to take office on January 20. According to the conversation between the three, they hope to pass a bill “provided resources to fight the Covid-19 pandemic, for working families And the relief of small businesses, support to state and local governments, these efforts try to keep front-line workers paid, expand unemployment insurance, and provide affordable medical services to millions of families.”
Analyst’s stimulus forecast
As the stimulus negotiations progress, many people doubt whether the next stimulus package will be approved before the end of the year. On this issue, many leading analysts are also divided.
Michael Feroli, chief U.S. economist at JPMorgan Chase, wrote last week: “At the end of the first quarter, about $1 trillion is a reasonable expectation.” Morgan Stanley (Morgan Stanley) strategists also expect a stimulus package of a similar scale to be launched by early 2021.
Goldman Sachs analysts are more optimistic. They pointed out that even if the election results are still controversial, lawmakers may even have issued a $1 trillion stimulus plan before Biden’s inauguration in January. However, they believe that this stimulus plan will only have a “small” positive impact on US economic growth in 2021.
When do you think Americans will undergo the second round of stimulus testing? Let us know in the comments section below.
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