US: Big business for big crisis – Rabobank
|The third and largest bill dealing with the corona crisis came out of a battle between Republicans and Democrats about who should benefit: businesses or households. It appears that in order to get both parties to agree, the cost of the bill has increased, per Rabobank.
Key quotes
“The House of Representatives is expected to approve the $2.2 trillion fiscal stimulus package that the Senate passed yesterday.”
“Jobless claims report suggests that the unemployment rate is already at about 10%. We would not be surprised to see unemployment peak at 20-30% in the coming months.”
“The big fiscal stimulus package is not likely to prevent a very sharp contraction of the economy in March and April, but it could help soften the impact in the remainder of the year.”
“If the corona crisis lasts longer than the US lawmakers anticipated when writing this bill, we may see even more trillions pumped into the US economy during the course of the year.”
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