The United States of America is poised to set a new record following the announcement that the White House and Senate are planning to inject $2 trillion into its coronavirus-stricken economy. Notably, if the US Congress would approve the plan, it would mark the US’ most significant rescue package in history.
As per the report of Bloomberg, Senator Chuck Schumer, the Senate Minority Leader, had summarized the legislation to fellow senators last Wednesday, dubbing the bill as an “outstanding agreement.” The massive funds would notably be used to assist Americans who are now struggling personally and financially due to the COVID-19 outbreak. Workers would be given cash handouts. There would also be enhanced unemployment benefits, and businesses affected by the outbreak can apply for loans, among others.
As explained by Senator Schumer, Americans who earn an average of $75,000 would receive $1200 as direct payments, while couples making up to $150,000 would get $2400. Americans earning more than $75, 000 would also be assisted, although there would be a decrease in the amount. However, the senator said that the direct payments would cap out for those people who earn over $99,000.
In terms of unemployment benefits, workers would get maximum assistance. Laid-off workers would receive $600 per week, and they would be paid in full for the scope of 4 months. Meanwhile, in terms of loans, the proposal allotted $367 billion for small businesses, $500 billion for larger industries, and $150 billion for the local and state governments. The healthcare industry would get $130 billion in financial aid for supplies and equipment. Interestingly, there is a section in the legislation that prohibits Trump-owned companies from getting federal relief.
To ensure that the proposed funds would be used as proposed, the White House and the Senate agreed on the establishment of a new board that would oversee the appropriate and just allocation of funds.
The impact of the $2 trillion news to the global market
Interestingly, this news was followed by remarkable performance figures from the Asian markets. In Tokyo, the Topic Index surged by 6.9%. In Europe, the Stoxx 600 and the United Kingdom’s FTSE 100 increased by 4.4% and 4.5%, respectively.
Bitcoin (BTC) also exhibited a price hike following the news, with the surge accounting for 5% coming from the low of $4500.