Three Republican Senators demand fix to “life-threatening” drafting error in coronavirus bill

Eren Sengezer FXStreet

Republican Senators Tim Scott, Ben Sasse and Lindsey Graham published a statement demanding an immediate fix to a drafting error in the coronavirus emergency legislation that would incentivize layoffs and risk life-threatening consequences to critical industries.

"A massive drafting error in the current version of the coronavirus legislation could have devastating consequences: Unless this bill is fixed, there is a strong incentive for employees to be laid off instead of going to work," the statement read. "If the federal government incentivizes layoffs, we risk life-threatening shortages in sectors where doctors, nurses and pharmacists are trying to care for the sick. "

Senators noted that an alternative would be to have the Labor Department issue regulatory guidance clarifying that no American would earn more by not working than by working.

Market reaction

This statement had little to no impact on the market sentiment and Wall Street's three main indexes were last seen adding between 2.4% and 5.6% on a daily basis.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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