President Elect Joe BidenA third round of $ 1,400 incentive checks is proposed for most Americans. Analysts say that it may be several months until the economic consequences of the epidemic can help millions of families suffering.
The price tag of the relief package, called the American Rescue Plan, is likely to push through Republican lawmakers who passed a $ 2 trillion bill opposing Democratic efforts last year. Heights Securities analyst Hunter Hammond expects the final package to be trimmed from $ 1 trillion to $ 1.5 trillion. But most analysts believe lawmakers on both sides of the aisle will return $ 1,400 direct payments, which economists see as a lifeline for many cash-strapped workers who lost their jobs or epidemics. During the period, his income was low.
According to Ed Mills, an analyst at investment bank Raymond James, support for another stimulus package could lead to a number of developments that point to the widening of the economic crisis. A weak outlook for the labor market, with a larger-than-expectedAnalysts say that during the first week of January, as well as a record number of COVID-19 infections and deaths, may prompt lawmakers to support Mr. Biden’s plan for additional incentives.
“The market is back with an expectation that greater fiscal stimulus is unavoidable for all in the early days of the billion administration, including a $ 1.9 trillion US rescue plan,” Mills said in a report on January 15. We speculate that there is a possibility of additional fiscal support, with time and scope in flows much higher. ‘
Analysts say the issues are prominent in whether Republican legislators will support the package, or if the Biden administration will eventually deal with its priorities by breaking spending proposals into two bills.
Janet Yellen, the choice of President-Elect Joe Biden as Treasury Secretary, said on Tuesday that the incoming administration would focus on winning the quick passage of its $ 1.9 trillion pandemic relief plan. Yellen argued that additional stimulus, including Mr. Biden’s proposal for a $ 15 minimum wage, is necessary to stem the economic “panic caused by this epidemic.”
Analysts here predict about $ 1400 checks and other spending proposals.
Is the $ 1,400 check a deal?
According to Wall Street and political analysts, very likely. Support is growing among Republican lawmakers for additional incentives directed toward low and middle-income households, with the latest attempt to pass a $ 2,000 stimulus check winning some bipartisan support.
There is an 85% probability that the scale-down package will be passed in the first three months of 2021, Hight predicts with Hammond Securities. Due to ongoing support for additional direct assistance to families, the check is likely to be included in that small package.
“We believe there is support for a smaller package, which includes a $ 1,400 check, more health care funds, support for small businesses and some state and local assistance,” Mills said.
When will I receive a check for $ 1,400?
Goldman Sachs chief US political economist Alec Phillips thinks the package can be passed from mid-February to mid-March. After the relief bill is passed by Congress, it should be signed by the President. After that, the IRS will distribute the money via direct deposit, mailed checks and prepaid debit cards.
In the first incentive payment in April 2020, which directed qualified adults, as well as $ 1,200 to $ 500 per child, payments typically take from two weeks to several months to reach people. The second round of checks, which sent $ 600 to each eligible adult and child, required about a week for the money to come through a direct deposit.
But in some cases people experiencedBecause of problems with their account information. Based on the payment of the previous stimulus amount, and Congress passed a new relief bill by mid-February, the check could come into bank accounts by the end of February, though that would probably be the best case. If a package is passed by the end of March, people can receive their checks by the beginning of April.
Analysts say it is a warning that at least 10 Republican senators support the deadline, allowing 60 votes to pass a possible filibuster and pass the bill. If the Biden administration cannot garner enough GOP support, incentive backers make it known as budget restructuring. That parliamentary maneuver only requires a majority vote to become law, although it may delay passage.
Do Americans Really Need Money?
Millions of families are facing a growing economic crisis as the epidemic continues to worsen, causing some businesses to lay off employees and work hours.
In December, fell to hiring around the US, Because the virus worked particularly hard on restaurants, bars and other service-related businesses. Number of Americans applying for weekly jobless claims, also a proxy for layoffs last week .
Financial need is greatest among low-income households. Nearly half of households with incomes above $ 150,000 said they needed an incentive check for financial stability according to Credit Karma’s recent survey. A November survey found that about 6 out of 10 households are facing financial crisis.
Credit Karma’s Chief People Officer Coleen McCreery explained in the email that the additional incentive money “will be necessary for the financial stability of many Americans, including those with higher incomes.” “As the epidemic goes on, Americans are feeling the financial crunch.”
A new survey from Bankrate.com found that more than half of Americans said that a second incentive check of $ 600 per person would last them no more than a month. Most said they would use the money to pay house bills and day-to-day.
Overall, Mr. Biden’s incentive plan would be around $ 3,500 per house, according to Oxford Economics. Among other measures to support workers and help propel the economy, he wants to increase the increased unemployment benefit by $ 400 per week and called for the federal to increase.
The pay floor, now $ 7.25 per hour, has not been raised since 2009, although many states and cities around the US have raised the local minimum wage.
– Reporting by Associated Press.