In first speech to Congress, US Pres. Biden to push $4 trillion spending plans – Reuters

Anil Panchal FXStreet

As global market players await US President Joe Biden’s first “Joint Congress” speech, up for publishing around 01:00 AM GMT on Thursday, Reuters cites sources confirming linkages to the $4.00 trillion stimulus.

“US President Joe Biden plans to unveil a sweeping $1.8 trillion package for families and education in his first joint speech to Congress on Wednesday, as he stresses the need to invest to compete with China, the White House said,” per the news.

“Biden will argue that the new package – which together with an earlier infrastructure and jobs plan totals around $4 trillion, rivaling the annual federal budget – is a once-in-a-generation investment vital to America's future,” added Reuters.

While signaling details of the upcoming “American Families Plan”, the piece states “$1 trillion in spending on education and childcare over 10 years and $800 billion in tax credits aimed at middle- and low-income families.”

Other than the stimulus, Biden is also likely to speak on foreign affairs, how his administration has handled the coronavirus pandemic and the status of vaccinations, per the news.

FX implications

Given the market’s like for stimulus, details of larges aid packages may help propel the risk catalysts. However, the tax-hike concerns and the industry’s dislike for the same could cap the optimism.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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