US Congress reaches deal on $900 bn Covid-19 stimulus package

The package would be the second-largest economic stimulus in U.S. history, following a $2.3 trillion aid bill passed in March. It comes as the pandemic accelerates, infecting more than 214,000 people in the country each day. More than 317,000 Americans have already died.

Read more at : US Congress reaches deal on $900 bn Covid-19 stimulus package

USA: Krugman: Is America becoming a failed state?

OP obstruction did a lot of damage even during the Obama years. Republicans used hardball tactics, including threats to cause a default on the national debt, to force a premature withdrawal of fiscal support that slowed the pace of economic recovery. I’ve estimated that without this de facto sabotage, the unemployment rate in 2014 might have been about 2 percentage points lower than it actually was.

Most immediately, the coronavirus is running wild, with new cases exceeding 100,000 a day and rising rapidly. This is going to hit the economy hard, even if state and local governments don’t impose new lockdowns.

Read more at: Krugman: Is America becoming a failed state?

USA: Second stimulus check: Here’s the latest on a new relief package - by Karin Price Mueller

Lawmakers in Washington, D.C. still haven’t come to an agreement about a new round of stimulus checks, even though both sides claim to support the idea.

By all accounts, it’s not looking good.

The White House still supports new individual stimulus payments to Americans, Treasury Secretary Steven Mnuchin said Tuesday.

“The president and I remain committed to providing support for American workers and businesses,” Mnuchin said. “I believe a targeted package is still needed and the administration is ready to reach a bipartisan agreement.”

While Democrats and Republicans agree in principle on a new round of $1,200 stimulus checks, the two sides are at a standstill on other parts of a relief package, including aid to states, small businesses and schools.

They’re $1 trillion apart on how large the package should be.

Read more at: Second stimulus check: Here’s the latest on a new relief package - masslive.com

US Stimulus Bill: Defeating Republican stunt, House passes $2 trillion in coronavirus stimulus - if it fails US Economy will be on life support

The House passed the third stage of coronavirus response, despite the antics of Kentucky Republican Rep. Thomas Massie. It took great deal of legislative maneuvering, with Massie insisting that he was going to demand a recorded vote, rather than allowing it to pass—which was inevitable—by voice vote. That meant that at least 216 members, enough to provide a quorum, had to be in the chamber simultaneously to defeat his demand, and allow the bill to pass by voice. Which it did, as the House had planned on from the beginning.

They had members sitting in the gallery, an unusual if not unprecedented situation, so that they could maintain social distancing. All the same, Massie put all those colleagues—who had already had to travel from all over the country—in the same room. The staff did their best to keep everyone safe, but they all had to be in that room together. They all had to come to D.C. It will be a miracle if no member among the dozens who had to be there falls ill as a result of this stunt from Massie. If nothing else, this episode demonstrates that leadership has to take the health of Congress much more seriously. Speaker Pelosi and Minority Leader McCarthy, as well as Senate Leaders McConnell and Schumer, HAVE to figure out how to allow the Congress to function remotely.

Note EU-Digest: Trump tweeted : " I just signed the CARES Act, the single biggest economic relief package in American History – twice as large as any relief bill ever enacted. At $2.2 Trillion Dollars, this bill will deliver urgently-needed relief for our nation’s families, workers, and businesses". #CARESAct https://twitter.com/senategop/status/1243613618186465280 …

And by doing so added $2,2 Trillion Dollars to the US Deficit. If it helps to get the US out of the doldrums  great, but if this quickly put together aid package fails to do what Trump believes it will, it could also be the beginning of a US economic meltdown. 


Read more: Defeating Republican stunt, House passes $2 trillion in coronavirus stimulus

US Economy - Voodoo Economics: Even though Stocks jump on hopes for a coronavirus stimulus package - "reality of positive effect is still very nebulous - by Jessica Menton

U.S. stocks advanced Tuesday on hopes that Congress would pass a stimulus bill to shield the economy from the coronavirus pandemic.

The Dow Jones Industrial Average rallied more than 1,600 points after slumping to a three-year low a day earlier. The Standard & Poor’s 500 jumped 7.5%. Stock futures had briefly surged 5%, triggering an automatic shock absorber.

Stocks stabilized overnight after a turbulent start to the week as Congress was nearing a rescue plan that could inject $2 trillion into the economy. The measure is designed to provide direct payments of $1,200 to most Americans, help small businesses shuttered across the country and aid the hard-hit travel industry.

House Speaker Nancy Pelosi said Tuesday morning a deal on an economic stimulus package may be reached in the "next few hours."

Read more at: Dow: Stocks jump on hopes for a coronavirus stimulus package

Fed says several members could support additional efforts to boost economy if needed - by Martin Crutsinger

The US Federal Reserve policymakers are open to further efforts to stimulate the U.S. economy if growth falters or threats escalate.

Minutes of the central bank's April 24-25 meeting released Wednesday stated that "several members" thought additional Fed support could be needed if the recovery lost momentum or if the risks to the economy became great enough.

The minutes did not spell out what circumstances would trigger further Fed efforts to lower interest rates to boost the economy. But they did note some threats to the U.S. economy. One is Europe's debt crisis. Another is the risk that spending cuts and tax increases that could take effect at year's end if Congress can't reach a budget agreement could slow growth more than expected.

The comments stood in contrast to the previous minutes, which said that only "a couple" of members expressed support for further bond purchases. Since the financial crisis, the Fed has pursued two rounds of bond purchases to try to push down long-term interest rates, with a goal of encouraging borrowing and spending.

Read more: Fed says several members could support additional efforts to boost economy if needed - Winnipeg Free Press