Tags: 2020 Elections | stimulus | election | coronavirus | economy

Financial Experts Predict Election Results Will Bring Smaller Stimulus Package

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By    |   Wednesday, 04 November 2020 03:27 PM

While the next president is still unknown, experts say the election results logged so far indicate that the next coronavirus stimulus package may shrink in size, CNBC reports.

Brian Gardner, the chief Washington policy strategist at Stifel Financial Corp., wrote in a Wednesday analyst note that any forthcoming federal aid could be reduced because the Democrats did not have a sweep of the White House, Senate, and House.

''A stimulus package is still possible, maybe probable, but it will likely be a smaller deal than in a blue wave scenario,'' Gardner wrote. ''We think it will be under $2 trillion, which could disappoint investors.''

Ahead of the election, House Speaker Nancy Pelosi, D-Calif., was negotiating with Treasury Secretary Steven Mnuchin on a stimulus package. But efforts to come to an agreement failed to come to fruition before Election Day.

On Wednesday, Senate Majority Leader Mitch McConnell, R-Ky., said he thinks lawmakers should come up with a new aid package before the end of the year. Before the election, he was calling for a January bill.

It is unclear what cuts would be made to a proposed aid package. CNBC reports that federal support for unemployment benefits likely will be included, but to what extent is unknown. Democrats have pushed for $600 per week, while Republicans would like to see that reduced to $300 or $400.

Unemployment support provided through the CARES Act is also set to expire on Dec. 31. One program expiring is the Pandemic Unemployment Assistance program, which allows states to provide payments to workers who would not otherwise qualify for jobless benefits, and the Pandemic Emergency Unemployment Compensation, which allows states to provide up to 13 more weeks of unemployment checks.

Ahead of the election results, Gardner said it was likely direct payments would be included in the package. But it is unclear whether they will total $1,200 per person or even be included at all, according to CNBC.

Bill Hoagland, senior vice president at the Bipartisan Policy Center and a former Senate staff member, told CNBC he is less certain more $1,200 payments will be included in the package.

''I would look to where things stand first quarter of next year as to whether or not there will be another round of stimulus checks,'' Hoagland said. ''I don’t sense it right now in the December timeframe.”

Ed Mills, a Washington policy analyst at Raymond James, said a trimmed down stimulus would include extra funding for small businesses, healthcare, and money to help with school reopenings.

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While the next president is still unknown, experts say the election results logged so far indicate that the next coronavirus stimulus package may shrink in size, CNBC reports.Brian Gardner, the chief Washington policy strategist at Stifel Financial Corp., wrote in a...
stimulus, election, coronavirus, economy
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2020-27-04
Wednesday, 04 November 2020 03:27 PM
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