- President-elect Joe Biden’s economic advisers fear another recession is imminent, The New York Times reports.
- The impasse over another stimulus package and the prospect of losing millions of people to unemployment benefits will force congressional Democrats to pass another aid package too quickly.
- The increase in the virus case creates another wave of sanctions and closures that experts say could jeopardize economic recovery.
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President-elect John Biden’s economic advisers are urging Republican Democrats to make a provocative deal with Republicans, fearing U.S. Is leading to a recession, as cases of the virus have increased and a new aid package has been in place.
The New York Times reported Sunday that, with federal evacuation defenses and the end of student-loan deferrals, the Biden team was also increasingly concerned about the possibility of losing millions of Americans’ unemployment benefits next month.
The threat of a “double-dip recession” raises the urgency to reach an agreement on an economic relief package, even if it is not as broad as the demands of House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer, the Times reported.
The Biden transition team did not immediately respond to a request for comment. Biden’s spokesman, Andrew Bates, Told Washington Post reporter Jeff Stein It is “this is wrong” and that “the president-elect fully supports the speaker and the leader in his negotiations.”
Republicans and Democrats have been arguing for months about the size and scope of the stimulus package to move the economy forward. Senate Majority Leader Mitch McConnell has demanded the same as a thin aid bill worth $ 500 billion that Democrats have twice rejected.
Democrats in Congress favor a comprehensive multitrillion-dollar plan that includes 1, 1,200 stimulus testing, $ 600 federal unemployment benefits, funding for virus testing and contact, and state aid. The stalemate has threatened the arrival of federal aid until Biden takes office in January.
Since his election victory over President Donald Trump, Biden has moved forward in discussions about a second economic aid package. Friday, Pelosi, Biden sumara and Repeat their call To pass a second relief plan to Congress before the end of the so-called lame-duck session.
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But the recent rise in cases of the virus has signaled further sanctions and business termination in many parts of the country, and experts say delays in federal aid could seriously hurt the economy at a sensitive moment in its recovery. Weakness claims have risen boldly last week for the first time since October and new recruits have slowed.
“In the current environment, Mitch McConnell is unlikely to agree to the 2 package,” said Arindrajit Dubey, an economist and professor at Amherst University in Massachusetts. Said on Twitter. “It’s much better to enter the new year without any relief than to make a difficult compromise. At some point we have cut our losses. Otherwise the pain will be greater.”
Analysts at JPMorgan on Monday estimated that Gross Domestic Product will shrink by 1% year-on-year in the first quarter of 2021. Goldman Sachs lowered its first-quarter forecast, but still expects 1% growth next year.
