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Original Caption: Big Two Americans Back $ 908 billion Aid Program, Fed Calls For More Stimulus, Bipartisan Engagement Waits To Heat Up, Gold Prices May Continue To Rebound
On December 1, Democratic and Republican lawmakers proposed a $ 908 billion stimulus plan. On December 2, the Speaker of the United States House of Representatives, Pelosi, and the Democratic leader of the Senate, Schumer, called for an immediate consultation on the economic stimulus package and urged Senate Majority Leader McConnell to use the bipartisan proposal of $ 908 billion as the basis for negotiations. Fed Chairman Powell reiterated on December 2 that he urged Congress to pass more stimulus spending. An economist at investment bank Raymond James believes that compromise can happen now, although there is no guarantee.
Pelosi and Schumer support a $ 900 billion stimulus plan and urge McConnell to use it as the basis for negotiations.
On December 1, a group of bipartisan senators announced a $ 908 billion economic stimulus package to break a stalemate that lasted for several months. Under this cross-party aid plan, businesses will receive about $ 300 billion in funds similar to the “Wage Protection Program,” and state and local governments will receive $ 240 billion, including funding for schools. Another $ 180 billion will be used to extend the weekly unemployment benefit of $ 300 for a period of four months.
In addition, the program will invest US $ 16 billion in vaccine distribution, virus testing and contact tracing. The program will also allocate funds for rental assistance, childcare, etc. However, the plan will not include the writing of another check for most Americans.
Pelosi and Schumer said in the statement: “We believe McConnell should use the senator’s proposed cross-party framework as a base and immediately begin negotiations between the two parties and the two houses of Congress. Of course, we also propose improvements in other areas. But we must act immediately. We believe that through honest negotiations, we can reach an agreement. “
After stalling on the bailout issue for a month, the parties again tried to negotiate to reach an agreement. Both parties have called for the aid bill to be passed by the end of 2020, but there are fundamental differences on what steps should be taken to boost the economy and the medical system. Protections for unemployed Americans, renters, and federal student loan borrowers will expire at the end of this year. As the epidemic in the United States has worsened, all states and cities have tightened epidemic restrictions.
Before the election, Democrats insisted on a $ 2.2 trillion package. Senate Majority Leader McConnell said the scale is well beyond the required scale. Although the two sides announced a $ 908 billion bailout plan on Dec. 1, McConnell only approved about $ 500 billion in aid and said it was approved by President Trump.
Powell urges Congress to pass a new round of economic stimulus plan as soon as possible
Earlier, the Democratic Majority Leader in the House of Representatives, Hoyer, stated that he hopes the two sides can reach an agreement before the weekend and pass it before next week.
This requires all parties to quickly reach a compromise when disputes on key issues continue. McConnell declared as early as Dec. 1 that he hoped to tie the aid to a government appropriations bill that Congress must pass by Dec. 11.
In light of the intensification of the new corona epidemic crisis in the coming months, Fed Chairman Powell reiterated on Dec. 2 that he urged Congress to pass more stimulus spending, focusing on the unemployed, small businesses. and state and local governments.
Powell said at the House Financial Services Committee hearing: “Starting with the US job market, many areas may need help. I think we need to remember that while we have made rapid progress on resuming work, we still There are 10 million people due to Unemployed due to the epidemic. “
Powell said at the hearing that the financial assistance provided by Congress is “critical” and will serve as a “bridge” for the US economy to persist from the current epidemic situation until there is enough vaccine to provide people next year.
Powell said that if Congress does not provide assistance, many people will lose their homes, many small businesses will go bankrupt and “part of the American economy will disappear,” negatively impacting the economic recovery next year. Powell emphasized that many small businesses are already under tremendous pressure and Congress needs immediate action.
Although there are doubts, experts still believe that the two parties can reach a compromise
Negotiations between Republicans and Democrats about what the economic stimulus package should include and how much the government should spend have been the focus of debate.
In fact, Senate Majority Leader McConnell also sent some optimistic signals. He said on December 2: “The two sides have entered a more effective negotiation stage. In recent days, the leaders of the Democratic Party have sent new signals and are ready to participate sincerely.”
Given that Republicans are calling for significantly less spending than Democrats, it remains to be seen if leaders can agree on measures by the end of the year. Both sides acknowledged that after President-elect Biden takes office next year, Congress may need to consider another aid bill.
House Democratic Majority Leader Hoyer said that even if a deal is reached next week, it doesn’t necessarily mean the federal government will stop helping the economy. He hopes this issue will be discussed again in 2021 after a worship service at the main White House.
It should be noted that President-elect Biden of the United States has recognized the new stimulus plan mentioned above with a scale of 908,000 million dollars. However, in his opinion, even if it passes, it is only an interim measure, and there will be more steps after he takes office. to stimulate.
Indeed, as lawmakers continue to work hard to reach a compromise, including new bipartisan and Republican proposals, some question whether this is enough to give Americans more before some key protections expire later this month. Financial relief.
Ed Mills, a Washington policy analyst at investment bank Raymond James, said he was “a bit optimistic” that the commitments could happen now, although there is no guarantee.
The looming fiscal cliff and the Fed’s urgency to take action may prompt Congress to act. At the same time, ADP’s latest monthly employment report showed that the hiring rate in the United States in November fell to the lowest level since the summer.
Mills said: “All the signs will indicate that an agreement is being reached, but the process is not traditional at all.
As investors raise the possibility of launching a new round of fiscal stimulus to the United States on December 2
Cash gold
Continue to rally, update the six-day high to USD 1,832.52 split, entered a tight range on December 3, and the current price is close to USD 1,828.
Huitong.com recalls,
Although McConnell opposed the $ 908 billion stimulus plan, expecting less stimulus. However, the Speaker of the United States House of Representatives, Pelosi, and the Democratic leader of the Senate, Schumer, urged him to use the agreement as a basis for negotiations. Fed Chairman Powell once again reiterated that he urged Congress to pass more stimulus spending. Investment bank Raymond James also believes that there is a possibility of a compromise between the two parties. Combining these circumstances, the possibility of a breakthrough in the short-term US fiscal stimulus negotiations is increasing, and the price of gold may continue to rally. Investors must remain concerned about this.
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At 9:58 a.m., December 3, Beijing time,
Cash gold
Quoted at $ 1,826.60 an ounce.
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