[ad_1]
US lawmakers began their journey on Sunday to pass a package worth about $ 900 billion to mitigate the economic impact of Covid-19 on millions of Americans, after Democrats and Republicans reached a compromise on powers. 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. .
“I think there will be a deal,” Republican Sen. Mitt Romney told CNN.
He added that “there were always unfinished business, but the most complicated issues were resolved very late last night,” agreeing on matters related to the central bank.
Congress is working on the basis of a Sunday midnight deadline as it must reach consensus on helping economically stressed American families, businesses, and the 2021 federal budget to avoid the closure of government departments. .
Such a lockdown, an unprecedented scenario in Washington, would be catastrophic, given the deteriorating economic situation and the daily record numbers of deaths from Covid-19.
The new agreement is expected to preserve the central bank’s ability to establish emergency loan 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 Fed’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.
Senate Democratic Minority Leader Chuck Schumer confirmed via Twitter on Sunday that an agreement had been reached to abandon “dangerous language that hampers the ability of the Federal Reserve 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 stimulus bill?”
“Go ahead and give them more money as direct payments,” he said.
The U.S. House of Representatives passed a two-day temporary spending bill, with the goal of avoiding a government shutdown and giving negotiators more time to present details on a related broader aid and funding package. with the emerging coronavirus crisis.
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 number of injuries and deaths due to the epidemic in the United States, the economy has been hit hard and the number of unemployed has risen 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 possibility of closing federal administrations is looming, the House of Representatives voted Friday (230-60) in favor of extending funds from federal agencies until Sunday to allow the parties involved 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 epidemic.
A massive $ 2.2 trillion package would prevent an even more severe 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 face the risk of bankruptcy if they don’t receive new federal aid.
The central bank estimated that the unemployment rate would reach 6.7 percent by year-end, before dropping to five percent next year, which is still far from the 3.5 percent recorded in February.
