Republicans refuse the proposed $ 1.9 trillion bill
February 3, 2021 11:21 am
Market volatility rose on Tuesday amid talks on new economic stimulus. A day before, GOP senators submitted a $ 618 billion plan, which is three times smaller than Joe Biden’s proposal.
But on Tuesday, Democrats tried to speed up the adoption of the $ 1.9 trillion bill, trying to bypass the approval of Republicans.
The budget for fiscal 2021, which includes government spending, has been sent to a preliminary vote. However, Republicans still strongly refused the sum of $ 1.9 trillion.
As a result, demand for the US dollar rose, thereby raising its price against gold, silver and euro.
But Jared Bernstein, member of the White House Council of Economic Advisers, noted that the proposal of Republicans falls short on a number of areas, including funding for school reopening. Republicans only allotted $ 20 billion for schools, which is much lower than Biden’s $ 170 billion.
And although Biden’s package faces potential roadblock from Republicans, if the Senate and the House of Representatives approve the budget resolution, a legislative instrument called “reconciliation” will be activated. It will allow the Senate to pass the bill with only 51 votes, 48 of which will be from Democrats themselves, two from independent members who work with them, and Kamala Harris who is Vice President.
If this happens, it will mark the first time the Democrats used such a maneuver.
“A compromise on incentives will be very beneficial for financial assets in the medium term, as it means there is a chance for the economy to recover,” said Francois Savary, CIO of Prime Partners.
The material has been provided by InstaForex Company – www.instaforex.com
Market volatility rose on Tuesday amid talks on new economic stimulus. A day before, GOP senators submitted a $ 618 billion plan, which is three times smaller than Joe Biden’s proposal.
But on Tuesday, Democrats tried to speed up the adoption of the $ 1.9 trillion bill, trying to bypass the approval of Republicans.
The budget for fiscal 2021, which includes government spending, has been sent to a preliminary vote. However, Republicans still strongly refused the sum of $ 1.9 trillion.
As a result, demand for the US dollar rose, thereby raising its price against gold, silver and euro.
But Jared Bernstein, member of the White House Council of Economic Advisers, noted that the proposal of Republicans falls short on a number of areas, including funding for school reopening. Republicans only allotted $ 20 billion for schools, which is much lower than Biden’s $ 170 billion.
And although Biden’s package faces potential roadblock from Republicans, if the Senate and the House of Representatives approve the budget resolution, a legislative instrument called “reconciliation” will be activated. It will allow the Senate to pass the bill with only 51 votes, 48 of which will be from Democrats themselves, two from independent members who work with them, and Kamala Harris who is Vice President.
If this happens, it will mark the first time the Democrats used such a maneuver.
“A compromise on incentives will be very beneficial for financial assets in the medium term, as it means there is a chance for the economy to recover,” said Francois Savary, CIO of Prime Partners.
The material has been provided by InstaForex Company – www.instaforex.com