The House of Representatives has nine days of formal session and the Senate 14 days before both chambers adjourn for the new year. With less than a month to debate, design and vote on a new stimulus package, Congress is expected to work overtime, including weekends, to reach some kind of deal. It seems that there will be a second stimulus package and therefore a second cyclical test. We draw this conclusion on the basis that both sides in Congress and President Trump see the need for a second package and have conducted months of negotiations on what it will contain. However, there is no clear answer to the question of whether or when this will happen from now on. After the election, House of Representatives spokeswoman Nancy Pelosi continued to insist on her revised $2.2 trillion heroes act, while the White House reportedly resigned from negotiations on a new stimulus package. Before the election, Treasury Secretary Steven Mnuchin spoke almost daily with Pelosi about the economic conditions, but the two could not agree. It is now up to Senate Majority Leader Mitch McConnell to resume talks with Pelosi. On October 1, the House of Representatives passed a revised Heroes Act, which included a second cyclical review and additional benefits such as improving unemployment benefits for tens of millions of Americans.
The House of Representatives bill, approved primarily by Democrats, was not supposed to advance through the Republican-controlled Senate, and in fact not. Pelosi, Mnuchin`s trade debt as a stimulus to the negotiations stop t.co/HZOG3BGg8l pic.twitter.com/iLrTGVWOxP so Pelosi and White House Chief of Staff Mark Meadows remain optimistic that a deal can be reached soon. “Hopefully we can get a deal the next day,” Meadows said. “We are still working on it, Minister Mnuchin and I have spoken, and we are still working with their teams, but we are making adjustments and trying to find the language to reach a compromise.” Here`s what we know – the White House, the Senate and the House of Representatives agree that a second stimulus package is needed, and it`s also a second cyclical test. The fact that these divided entities are at least able to agree on this point gives hope. Although the House of Representatives passed the $2.2 trillion HEROES Bill, it failed in the Senate. Instead, the Senate insisted that a $500 billion aid package be closer, which they did not pass at the end of October. Goldman Sachs analysts are more optimistic that while the election results are still controversial, lawmakers are likely to adopt a $1 trillion stimulus package before Biden`s inauguration in January. However, they believe the stimulus package will have only a “small” positive influence on U.S. growth in 2021.
According to a tweet from Politico Journalist Burgess Everett, McConnell House Democrats have also made their own proposal, but its content is little known. However, if the package exceeds a trillion dollars — and we will keep our eyes open on one last number — it is hard to see McConnell pass the package in the Senate. The talks collapse again until after January 20: if partisan differences prevent the passage of a bill, it is likely that they will somehow resume after the inauguration in January. Here are some executive steps Biden could take immediately if a stimulus package is not adopted until he is sworn in as president. Pelosi and minority Senate leader Chuck Schumer are under increased pressure to support a small stimulus package, even if it means now sacrificing some funding programs, with the possibility of getting more help before President-elect Joe Biden`s Jan.