US Republicans set to propose smaller coronavirus stimulus bill – CNBC

At the start of Thursday’s Asian session, CNBC relies sources to convey that the US Republican Party members are considering narrowing the COVID-19 relief bill gap with the Democratic party to break the deadlock over stimulus talks.

Key quotes

Republicans are working on a more narrow coronavirus stimulus bill that they could release to members of Congress as soon as this week, two senior administration officials and three people briefed on the matter told CNBC.

The GOP is mulling a roughly $500 billion proposal that addresses only areas of bipartisan support: expanded unemployment insurance, a new authorization of small business loans and money for schools and Covid-19 testing, treatment and vaccines. The plan would not include another direct payment to Americans. 

It would set enhanced jobless benefits at roughly $300 to $400 per week. The figure would be less than the $600 per week approved in March, which Democrats want to reinstate after it expired at the end of July. 

While Republicans appear intent on putting more pressure on Democrats, the legislation is unlikely to become law. House Speaker Nancy Pelosi, D-Calif., still does not plan to restart stalled pandemic aid talks with the White House until the GOP agrees to double the price tag of its existing, roughly $1 trillion proposal, her spokesman Drew Hammill said Wednesday. 

FX implications

The news fails to offer any major market move as chatters concerning the same have been making rounds since House Speaker Nancy Pelosi’s offer for compromise over the Democratic bid for the stimulus plan. The reason for the market ignorance could also be traced to the traders’ cautious sentiment ahead of the Fed Chair’s speech in the Jackson Hole Symposium event.