Senior Democrats abandon backup plan on $15 minimum wage – WaPo

Dhwani Mehta FXStreet

US Senior Democrats are doing away with a backup plan to increase the minimum wage through a corporate tax penalty, after facing numerous challenges in drafting their proposal over the weekend, the Washington Post (WaPo) reports, citing two people familiar with the internal deliberations.

Additional details

“Senior Democrats — including Wyden and Sanders — are walking away from that backup effort.”

“On Thursday, the Senate parliamentarian said that the $15-an-hour minimum wage included in President Biden’s $1.9 trillion stimulus plan was inadmissible under the rules Democrats are using to pass the bill through the Senate.”

“The House on Saturday passed the stimulus bill, including the measure to increase the minimum wage to $15. It’s not clear exactly how the Senate will proceed, although the White House has ruled out overturning the parliamentarian’s ruling.”

Market reaction

The risk-recovery theme remains intact so far this Monday, as the investors cheer the news of the US stimulus passage in the House of Representatives.

The S&P 500 futures rally nearly 1% while the US dollar index correct from weekly tops of 90.97.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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