In the United States, the vital stimulus plan for the economy resurfaces

Negotiations in Congress resumed after the hiatus marked by the presidential campaign. The stakes are high for the United States, which risks another recession in the fourth quarter.

Afterwards, it’s time for negotiation. In Congress, the teams of elected Democrats and Republicans from the Senate and the House of Representatives met on Thursday to address the major subject of the new economic stimulus plan. The latter must take over from the one adopted urgently in March, of more than 2200 billion dollars. because of the deep disagreements between the two parties, exacerbated by a particularly divisive electoral campaign.

But Joe Biden sounded the alarm: “the federal government should provide (this support) as soon as possible and with flexibility to meet the needs of states», Said the president-elect. “Everything is necessary during this pandemic. States and communities should not have to fire teachers, police, firefighters, cut vital services», A relevant Joe Biden.

Without resources on Boxing Day

The new stimulus package includes support for businesses, schools, families, workers, the unemployed, and for the education of young children or health care. The resumption of negotiations was eagerly awaited, both by the millions of American households facing unemployment or loss of income, and by small businesses on the verge of bankruptcy. This news also made Wall Street climb at the close.

The situation is indeed becoming urgent in the United States. If the news is good on, millions of Americans are on the verge of falling into extreme poverty. The aid granted in March, in the first stimulus plan, is indeed expiring, threatening 12 million unemployed people to find themselves suddenly without resources on Boxing Day. They will join the cohort of people who are already no longer entitled to any aid, warned The Century Foundation, a Democratic think tank. Meanwhile, millions of Americans could end up homeless, with evictions frozen only until December 31.

Financial assistance to households and businesses is all the more crucial as the health situation deteriorates with it. Thanksgiving, one of the most celebrated holidays in the United States, which usually results in large family reunions, worries health officials. They advised Americans not to travel on the occasion of this holiday. .

6.4 million unemployed

This new turn of the screw has significant consequences for employment. Thus, between November 8 and 14, 742,000 people were unemployed, or 30,000 more than the previous week, according to the latest figures from the Department of Labor. The country had nearly 6.4 million unemployed in early November. A declining figure, but if some have actually found a job, others are simply no longer entitled to unemployment benefits, paid for up to six months in the United States.

This is “not an isolated accident“, But marks the start of a new rise in unemployment”which will persist until the wave of Covid slows downWorries Ian Shepherdson, chief economist for Pantheon Macroeconomics. An official at the American Central Bank (Fed) even warned Thursday that a new recession was to be feared in the fourth quarter.

Trump s’oppose à la Fed

Despite these alarming signals, outgoing President Donald Trump said on Thursday that he did not wish to extend certain aid programs put in place in March, at the start of the pandemic, and asked the US Central Bank to return them to him. are left.

His administration believes that some of these loan programs were not intended to be extended beyond December 31. Treasury Secretary Steven Mnuchin therefore sent a letter to the President of the Fed asking him to “return unused funds to the Consolidated Revenue Fund». «This will allow Congress to reallocate $ 455 billion“, He indicated.

The Federal Reserve reacted quickly with an unusual statement, stating that it “would prefer that all of the emergency measures put in place during the coronavirus pandemic continue to play its important role in supporting our still tense and vulnerable economy».