Passa ai contenuti principali

Trump And Mnuchin Discussing $1.2 Trillion Package To Fund Stimulus Checks; Delayed IRS Payments

Update (1420ET): Mnuchin is discussing a $1 trillion $1.2 trillion stimulus plan according to CNN's Manu Raju, who tweeted on Tuesday "White House, Mnuchin now discussing stimulus plan worth $1 trillion, per source familiar," adding "Initial estimates of $850B increased after budget crunchers looked at numbers. Would include about $250B worth of checks for Americans."

Of that, $500 billion would go directly towards checks for Americans.

U.S. announces $850 billion COVID-19 stimulus package

Mnuchin doesn't expect checks to go out before the end of April, according to Politico, despite him saying "We're looking at sending checks to Americans immediately" on Tuesday.

Meanwhile, Mnuchin also announced that President Trump has signed off on allowing the deferral of $300 billion in payments to the IRS, according to CNBC.

Mnuchin said if individuals owe a payment, they can defer up to $1 million, and corporations may defer $10 million. The deferrals will be penalty-free for 90 days, he said. -CNBC

* * *

Update (1230ET): Dr. Birx said during her turn at the mic that young people going to bars and restaurants are seriously jeopardizing the government's response.

If Americans continue going to bars, restaurants and other places, "we will fail in containing this virus."

Dr. Anthony Fauci piled on, saying that the virus "peak" will likely look more like a "hump" if the government response is successful. But young people going out are seriously threatening the health of the vulnerable.

"Please follow the guidelines," he said.

Meanwhile, President Trump, returning to the mic, told reporters that he hoped to send $1,000 to every American. He also took a swipe at spring breakers, saying he was "not happy" about people disobeying the guidelines.

That would cost the Treasury ~$330 billion, plus whatever more in processing fees (tough using 'liberal math', the cost would be much, much higher.

Just to recap: Kudlow gave the market the first whiff of helicopter money yesterday, then Bill Dudley followed that up this morning, along with a few well-placed leaks, with Mnuchin delivering the final touches before sprinting off to the capitol.

And just look how that turned out...

...We call that the 'show us the money' formation.

*  *  *

Update (1200ET): After unveiling a plan for the Fed to work with the Treasury to provide $1 trillion in liquidity to the commercial paper market, Mnuchin added that he's working with Congress to plan a "big" rescue package for the public. He wouldn't give an exact figure, but did suggest that it might be larger than the $850 billion figure cited in the press.

The president wants this legislation passed by the end of the week at the latest, and will likely move ahead with sending checks to Americans within the next two weeks as part of the "very significant" package that will be presented to Congress today.

Payments should be looked as "business interruption payments" for Americans, Mnuchin said. Asked who would receive the checks, Trump said most Americans would, though those making "a million dollars a year" probably wouldn't.

"We want to make sure Americans get money in their pockets quickly," he added.

The plan will also include money for small businesses, as well as loan guarantees to airlines and tourism companies.

"We don't want airlines going out of business," Mnuchin said, adding that this crisis was "worse than 9/11" for the airlines.

Speaking of 9/11, Mnuchin insisted he wanted to set one thing straight before running off to Capitol Hill: The Treasury Secretary insisted that the market would not close because of the coronavirus, and that banks would stay open, even if they instituted shorter hours.

"The only reason the market closed after 9/11 was because the technology was disrupted...but Americans should know, we are going to do everything to make sure that Americans will have access to the money in their stocks, in their 401(k)s and their portfolios," Mnuchin said.

Stocks climbed to their session highs on the news, as the White House continues to move closer to where traders want it to be regarding fiscal stimulus.

*  *  *

With US stocks back in the green, White House is holding yet another press conference to discuss the latest progress in the response. Will Trump announce the massive $850 billion stimulus package that has been kicking around all morning?

Watch live.

 

Commenti

Posta un commento

Post popolari in questo blog

Fwd: The Looming Bank Collapse The U.S. financial system could be on the cusp of calamity. This time, we might not be able to save it.

After months  of living with the coronavirus pandemic, American citizens are well aware of the toll it has taken on the economy: broken supply chains, record unemployment, failing small businesses. All of these factors are serious and could mire the United States in a deep, prolonged recession. But there's another threat to the economy, too. It lurks on the balance sheets of the big banks, and it could be cataclysmic. Imagine if, in addition to all the uncertainty surrounding the pandemic, you woke up one morning to find that the financial sector had collapsed. You may think that such a crisis is unlikely, with memories of the 2008 crash still so fresh. But banks learned few lessons from that calamity, and new laws intended to keep them from taking on too much risk have failed to do so. As a result, we could be on the precipice of another crash, one different from 2008 less in kind than in degree. This one could be worse. John Lawrence: Inside the 2008 financial crash The financial...
Posta un commento
Continua a leggere

Charting the World Economy: The U.S. Jobs Market Is On Fire - Bloomberg

Charting the World Economy: The U.S. Jobs Market Is On Fire - Bloomberg https://www.bloomberg.com/news/articles/2019-12-06/charting-the-world-economy-the-u-s-jobs-market-is-on-fire Charting the World Economy: The U.S. Jobs Market Is On Fire Zoe Schneeweiss Explore what's moving the global economy in the new season of the Stephanomics podcast. Subscribe via  Apple Podcast , Spotify or  Pocket Cast . The last U.S. payrolls report of the decade was a doozy, beating expectations and doing its bit to keep the consumer in good health heading into 2020. That's good news given the various pressures still weighing on global growth. Here's some of the charts that appeared on Bloomberg this week, offering a pictorial insight into the latest developments in the global economy. U.S. Advertisement Scroll to continue with content ...
Posta un commento
Continua a leggere

The Inverted Yield Curve: Why It Will Not Lead To A Recession This Time | Seeking Alpha

The Inverted Yield Curve: Why It Will Not Lead To A Recession This Time | Seeking Alpha The Inverted Yield Curve: Why It Will Not Lead To A Recession This Time Apr. 23, 2019 8:41 AM ET Historically, an inverted yield curve has invariably led to a recession. We are currently experiencing an inverted yield curve. We have two reasons for the current inverted yield curve: the central banks irrationally raising short-term interest rates and investors expect a recession because of the extended boom period. The two reasons are not enough to lead to a recession, and other structural changes in the economy are pointing to a boom rather than a recession. Investors can capitalize on the current situation if they believe that the inverted yield cure would not lead to a recession. Summary and Paper Thesis Although an inverted yield curve led to a recession almost without exception in the last 50 years within a relatively short period of time after the inversion happened, this pap...
Posta un commento
Continua a leggere