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Millions of American citizens who have struggled financially due to the corona pandemic can breathe a sigh of relief. After months of bickering, an inter-party agreement was reached on a gigantic new aid package.
After months of fighting, Democrats and Republicans in the United States Congress agreed to a new stimulus package to cushion the effects of the crown pandemic. So said the Republican Majority Leader in the United States Senate, Mitch McConnell, and the Democratic Minority Leader, Chuck Schumer. Aid worth almost 900,000 million dollars is anticipated.
Among other things, an increase in unemployment benefits and a one-time direct aid payment of $ 600 is anticipated for many citizens. Aid is also planned for businesses ravaged by the crisis, as well as money for schools, the health system and tenants who are threatened with eviction.
According to the Wall Street Journal, an agreement was also reached on the powers of the Federal Reserve (Fed) during the pandemic. The Fed could continue to issue emergency loans without parliamentary approval. However, it would need the permission of parliamentarians to expand existing programs under the so-called Care Act.
Dispute over the powers of the Fed
The Republicans wanted to restrict the powers of the central bank to make loans to companies and institutions. They feared that the American Democrats could use this route to direct funds to their controlled governments in the American states. Democrats argued that restricting the powers of the Fed would prevent the new administration of President-elect Joe Biden from stimulating the economy.
Outgoing US President Donald Trump wrote to the online Twitter service immediately before the deal was announced: “Why isn’t Congress giving our people an economic stimulus program?”
Democrats and Republicans had been fighting for another aid package for months. Since March, the United States Congress has already launched stimulus packages with a volume of around three trillion dollars, which corresponds to more than 10 percent of the economic output of the United States.
