While the White House and House Democrats still cannot reach an agreement, voices are mounting that a new relief package including stimulus checks is highly unlikely to be delivered before elections. What could this do to the economy?
While the fact that the Covid-19 pandemic drags on makes the economy unable to recover as quickly as expected and keeps many Americans out of work, a new relief package continues to be delayed.
A host of experts in the United States are concerned about the lack of a new relief program and have warned that not having a second round of stimulus checks would stagnate the country's economy, causing the recovery to slow even more.
While Republicans and Democrats agree that taxpayers need a new round of stimulus payments, they still can't agree on the rest of the bill's measures. And the situation has reached what House Speaker Nina Pelosi described as a “tragic impasse”
Last Tuesday, Federal Reserve Chairman Jerome Powell also told the House Financial Services Committee that there are signs of recovery in the economy due to the aid that was approved to sustain and stimulate it, but warned that the future is uncertain without that support.
If finance experts are right, an agreement regarding a new stimulus bill will need to be signed and done as soon as possible so that citizens can receive a new stimulus payment this year.
There is also the possibility that Republicans and Democrats may not reach an agreement, but it is more likely that, after both parties have recognized the need for a relief program for the people, they will be able to put aside differences and deliver the financial help that is needed. The question is when.
Democrats said they are ready to present a new proposal this coming week. It remains to be seen if lawmakers, urged to pass a bill before elections, finally agree the issues keeping them apart.