President-elect Joe Biden has called for swift action on the giant $1.9 trillion economic relief, according to Bloomberg. Biden also seeks to boost refundable tax credits for the low-income earners and children while also expanding paid family and medical leave.
- Biden faces a legislative battle over the giant economic plan due to the inclusion of proposals opposed by many Republicans and the go-big price tag.
- Despite the Republican opposition, Biden enjoys a unified Democratic control of Congress which could allow him to act on the plan.
- Biden can bypass Senate Republicans on some of the items using the budget reconciliation tool.
- The departure of “volatile” Trump could also boost talks for the aid plan.
- The relief plan has elements likely to appeal to moderate Republicans including a $400 billion effort to contain the coronavirus and speed the economy’s reopening, as well as $1,400 in additional direct stimulus payments.
- Other Biden’s proposals such as more than doubling the federal minimum wage to $15 an hour, providing large-scale aid for state governments, and higher employment benefits could spur partisan warfare.
- The passage of the relief plan could also be hampered by the looming trial of outgoing President Donald Trump.
- Biden also plans to unveil a second major package, aimed at longer-term economic rebuilding, at a joint session of Congress next month.
- Many analysts anticipate a robust U.S. growth but things could worsen as support measures for small businesses and the unemployed passed by Congress in December runs out in March, and a federal eviction moratorium expires at the end of January.
U.S stocks are currently declining. SPY is down 0.22% on premarket, QQQ is down 0.16% on premarket.
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