US Senate passes $1.9 trillion covid relief bill after marathon votes

Dhwani Mehta FXStreet

After an over 25-hour marathon of amendment voting, the US Senate passed President Joe Biden’s proposed massive $1.9 trillion COVID-19 stimulus bill on Saturday, per Bloomberg.

Senate passed the relief bill with 50-49 votes after Democrats settled an intra-party dispute over unemployment aid.

Additional takeaways

“The American Rescue Plan Act, now heads back to the House, where Majority Leader Steny Hoyer said a vote will be held Tuesday.”

“The plan includes a wave of new spending, an extension of jobless benefits, another round of direct household payments, money for state and local governments and an expansion of vaccinations and virus-testing programs including a national vaccine distribution program for all residents regardless of immigration status.”

“The legislation would send a third round of stimulus payments -- this time at $1,400 per eligible individual.”

In response to the Senate clearance, President Biden said: “As tough as this moment is, there are brighter days ahead -- there really are. It’s never been a good bet to bet against America.”

Market implications

Ahead of Tuesday’s House vote, the US Treasury yields could continue with their recent upsurge amid the stimulus bill-induced reflation trade. Therefore, the US dollar could likely remain underpinned while non-yielding gold could extend its downward spiral.

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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