Wall Street strategist Ed Yardeni said the U.S. economy may be able to strengthen on it own with needing another large dose of coronavirus financial stimulus.
“There is still enough of this government stimulus that will keep the economy growing, probably through September, October, maybe November,” Yardeni recently told CNBC.
“And hopefully along the way we’ll see employment continue to pick up so the economy can grow on its own without necessarily needing another, or at least another big, stimulus package,” the Newsmax Finance Insider said.
Worries over rising coronavirus cases and waning hopes of more fiscal stimulus have led to a spike in market volatility in the past few weeks, and analysts expect trading to remain choppy in the run up to the Nov. 3 presidential election.
“I think as the economy starts to improve, we’ll find that we’re going to be surprised how quickly things — I don’t know if they’re going to come back to normal — but I think how quickly things do improve. Not just for those who are doing well now, but for those who have been particularly hard hit by all this,” he said.
White House economic adviser Larry Kudlow agrees with Yardeni. “I don’t think the V-shaped recovery depends on the package, but I do think a targeted package could be a great help,” the veteran financial guru and former Ronald Reagan adviser told CNBC.
“Even though I think the economy is improving nicely, it could use some help in some key, targeted places,” said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.
Meanwhile, House Speaker Nancy Pelosi said there’s a chance she and Treasury Secretary Steven Mnuchin can still reach a deal on a coronavirus stimulus package, and that Democrats will unveil a new “proffer” shortly, Bloomberg said.
“I trust Secretary Mnuchin to represent something that can reach a solution, and I believe we come to an agreement,” Pelosi said on CNN’s “State of the Union.”
She added that if a deal isn’t struck soon, Democrats might vote on a House-only version of a coronavirus relief package, including funds for airlines and restaurants, and more Paycheck Protection Program funding.
Discussion of a potential fresh House vote on stimulus follows weeks of resistance by Pelosi to suggestions from moderate members that Democrats need to show Americans they’ve taken some additional action since passing their Heroes Act in May.
Democrats and the White House will have to pick up the pace to complete a package before the Nov. 3 election after hitting an impasse in early August with the sides far apart.
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