[ad_1]
Jakarta, CNBC Indonesia – After months of negotiations on volume II of fiscal stimulus in the United States (US) that always ended in a stalemate, this week there is finally a bright spot. The United States Congress, consisting of the House of Representatives (DPR) and the Senate, successfully passed a $ 900 billion fiscal stimulus bill andmake with the government budget for the year to September 2021 worth 1.4 trillion dollars.
The $ 900 billion fiscal stimulus became the second-largest ever disbursed in U.S. history, after the $ 2 trillion stimulus launched last March, dubbed the CARES Act. As a CARES Act program, it has ended.
The bill has been presented to the President of the United States, Donald Trump, for his signature to make it legal and liquid. Under normal conditions, President Trump has 10 days (except Sundays) to sign the bill for it to become law, or to veto or cancel the bill. If Trump does not sign or veto the bill within 10 days, it will automatically become law.
That’s normal, but under current conditions there is a term “pocket veto” in which the bill will not automatically become law even if Trump does not sign or veto it. This can happen if within 10 days after the bill is presented to the president, the United States Congress goes into recess.
So far, Trump has not signed the bill. In fact, on Tuesday night local time, Trump took the market by surprise, on Twitter, calling the $ 900 billion stimulus a “disgrace.”
In the volume II stimulus, US Direct Assistance (BLT) received by US citizens amounted to $ 600 per person, half of what was previously received at $ 1,200 per person. For married couples, BLT earned US $ 1,200 and US $ 600 for child support. Similar to the CARES Act program, BLT is only administered once.
That is what worries Trump. He also asked the United States Congress to increase the $ 600 BLT to $ 2,000 per person and $ 4,000 for married couples.
There is still a deadline for additional stimulus talks in the coming days. For more information, the CARES Act fiscal stimulus will expire on December 26 and the budget to run the government will run out on December 28.
That is, if until the 26 or 28 Trump does not sign the bill, then for the moment there will be no fiscal stimulus for the US economy, worse still, the US administration will stop operating (to turn off). To keep in mind, since last September, the United States Congress approved a bill for the temporary budget of the United States government several times so as not to experience it to turn off.
So far, Democrats, who are Trump’s political opponents, have supported this wish, while Republicans who support the administration have yet to comment.
Nancy Pelosi, Speaker of the United States House of Representatives of the Democratic Party, said through her Twitter account that she was ready to follow the wishes of President Trump.
“The Republican Party has repeatedly refused to say how much the president wanted the BLT value. In the end, the president agreed with $ 2,000. The Democratic Party is ready to draft the bill unanimously this week. Let’s do it!” Pelosi wrote on her Twitter account.
For a long time, the Democratic Party had wanted to offer a higher-value stimulus, but the Republican Party rejected it.
If Republicans finally agreed, the value of the fiscal stimulus would have risen dramatically by more than $ 1 trillion.
If this happens, what Trump is reluctant to sign into the stimulus bill will undoubtedly benefit American citizens, the economy and financial markets. This means that when Trump rejects a stimulus, there will be a new stimulus of greater value, a greater stimulus is certainly good for the market.
However, if the “pocket veto” scenario occurs, it will certainly be bad news for everyone and be prepared for the risk of selling on global financial markets.
CNBC INDONESIA RESEARCH TEAM
[Gambas:Video CNBC]
(daddy / daddy)
[ad_2]
