Congress to pass $ 900 billion to ease Corona’s impact

Washington: On Sunday, US lawmakers appeared on track to pass a package worth around $ 900 billion to ease the economic fallout of Covid-19 on millions of Americans, after Democrats and Republicans reached a compromise on the powers of the United States. spending to be awarded to the Federal Reserve.

The package is expected to include assistance with vaccine distribution and related logistical issues, an additional $ 300 per week of unemployment benefits, and $ 600 stimulus checks, which is half the value of checks distributed last March under the CARES Act. .

Republican Senator Mitt Romney told CNN: “On Sunday, I think there will be an agreement.”

He added that “there were always unfinished business, but the most complicated issues were resolved very late last night” by agreeing on matters related to the central bank.

Congress is working on a Sunday midnight deadline as it must reach consensus on helping American families facing economic pressure and businesses, in addition to the federal budget for 2021 to avoid department closures. governmental.

Such a lockdown, an unprecedented scenario in politically divided Washington, would be disastrous, given the worsening economic situation and daily record numbers of deaths from COVID-19.

The new agreement is expected to preserve the central bank’s ability to establish emergency lending programs without the need for congressional approval, according to the Wall Street Journal, but the Federal Reserve will need approval to relaunch the Cares Act programs as soon as they expire at the end of this year.

Republicans sought to limit the Federal Reserve’s ability to extend credit to businesses and other institutions, indicating that Democrats were trying to use the legislation to create “illicit financing” for the state and local governments they controlled.

But Democrats emphasize that curtailing the bank’s powers can exacerbate the financial crisis and impede the ability of the next Joe Biden administration to revive America’s faltering economy.

And Senate Democratic Minority Leader Chuck Schumer confirmed via Twitter Sunday that an agreement had been reached to abandon “dangerous language that hampers the Fed’s ability to respond to crises.”

“Successfully solving this problem now allows us to move to providing aid to Americans, extending unemployment insurance, receiving life checks and more,” he wrote.

Before announcing the deal, US President Donald Trump said on Twitter: “Why isn’t Congress giving our people the (economic) stimulus bill?”

“Go ahead and give them more money as direct payment,” he said.

Democrats also prefer that Americans receive larger checks of $ 1,200, the same amount that was sent to millions of people this spring.

With the continuing record of injuries and deaths due to the epidemic in the United States, the economy was hit hard and the number of unemployed increased in the last two weeks.

Millions of Americans are expected to lose their unemployment benefits after Christmas, as federal decisions to stop evictions and student loan payments expire at the end of the month.

While the prospect of shutting down federal administrations was looming, the House of Representatives voted Friday (230-60) to extend funding from federal agencies through Sunday to allow stakeholders to reach an agreement.

A bill to help struggling businesses and the unemployed is seen as critical to supporting the world’s largest economy, at a time when new vaccines raise hopes of a possible imminent end to the pandemic.

A massive $ 2.2 trillion package would prevent a more serious economic slowdown.

The package included large sums to save American businesses, including $ 377 billion in grants for small businesses to pay workers’ wages and rentals, $ 500 billion in loans to major corporations and states, and nearly $ 600 billion. in tax exemptions and deferrals.

But his opponents argue that big companies have been earning big subsidies, while ordinary citizens and small businesses are not getting enough.

On Wednesday, Federal Reserve Chairman Jerome Powell warned that small businesses risk bankruptcy if they don’t get new federal aid.

The central bank estimated the unemployment rate to reach 6.7 percent by year-end, before dropping to 5 percent next year, which is still far from the 3.5 percent recorded in February.