Democrats Move At Breakneck Speed To Fast-Track Biden Stimulus; Pelosi Predicts Passage ‘Before’ March 15
Congressional Democrats are fully mobilized over the Biden administration’s $1.9 trillion stimulus – with House Speaker Nancy Pelosi (D-CA) announcing that her chamber will draft Biden’s bill “before the end of February,” with final passage “before” March 15, according to Bloomberg‘s Jennifer Jacobs and CNN‘s Manu Raju.
“Absolutely,” Pelosi says when asked if coronavirus stimulus will pass by March 15. “Before then.” https://t.co/XPvKN0lOIp
— Jennifer Jacobs (@JenniferJJacobs) February 5, 2021
The White House won’t commit to a timeline on the stimulus, while President Biden told reporters on Thursday with a straight face: “I’m not cutting the size of the checks. They’re going to be $1,400. Period.“
Adding to the urgency was Biden economic adviser Heather Boushey, who told BloombergTV following today’s jobs report: “The numbers that we got this morning really do underscore the cost of inaction,” adding “Without further aid, our economy is going to continue to struggle.”
“I think what’s really important, is that all those kindergarten teachers, those firefighters, those folks who are pulling in $60,000 or so, that they get this aid,” Boushey added, referring to the $1,400 stimulus checks – which are notably less than the $2,000 checks Biden promised, should Democrats regain control of the Senate following January’s special election in Georgia.
— Bloomberg TV (@BloombergTV) February 5, 2021
The current Democratic proposal would send $1,400 payments to individuals earning $50,000 or less, and $2,800 to married couples earning under $100,000. Heads of household earning up to $75,000 would also qualify.
In total, approximately 71% of Americans would receive the full benefit, and other 17% would receive partial benefit, according to Kyle Pomerleau, a fellow at the American Enterprise Institute who specializes in tax policy (via the Washington Post). This is less than Biden’s original proposal which would cap earnings at $75,000 for individuals and $150,000 for married couples.
As JPMorgan noted on Thursday, the Senate voted this morning to adopt a budget measure to fast-track Biden’s bill – paving the way for the fiscal package to pass via Reconciliation. They note that March should be viewed as the most likely time for the bill to pass, whether or not it has the votes to go through the “normal” 60 vote process, or via Reconciliation. Looking forward, the market “will continue to focus on fiscal policy and vaccines as the macro drivers.”
Fri, 02/05/2021 – 13:49