The White House economic advisor, Kudlow says that they plan for $250-300 bln to help small business and that workers could be leveraged even higher.
Key notes
Says phase-three bill for coronavirus relief should bring fiscal stimulus of $1.3 trln.
Says US has enormous resources to deal with distressed industries -fox news interview.
Says plan for $250-300 bln to help small business, workers could be leveraged even higher.
Says automakers want to get production back online as soon as possible -fox news interview.
Says if it takes more than $1.3 trln, ‘we will do more than that’.
Says US can afford to borrow money to help economy, Americans as needed.
Market implications
Stimulus is what the world needs right now as lower rates do little to encourage the consumer to go out and buy when they are instructed to stay at home. Small businesses are the key to the economy and the government’s commitment to them could help to stabilise the markets which have been in free fall again midweek.
US stocks plunged after triggering circuit-breakers that temporarily halted trading. The Dow Jones Industrial Average fell another 10% and has now erased all of its gains since President Donald Trump’s inauguration on January 2017.
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