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.

Tags: Biden