Nexstar has reported that a top aide to Vice President Mike Pence said Tuesday that the White House is looking at a second stimulus package totaling around $1 trillion.
“There’s obviously been a lot of stimulus put in the system over the last couple bills and so the price tag for us would be that,” Marc Short, Pence’s chief of staff, said during an interview on Bloomberg Radio.
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Mohsin noted provisions for the next round of relief could include changes to unemployment benefits, a back-to-work tax credit for workers returning to their jobs, a payroll tax cut, liability protections and tax decisions for companies for workers’ restaurant and entertainment expenses.
This report follows White House Chief of Staff Mark Meadows signaling support Monday for additional stimulus while noting there are proposals beyond the direct checks sent to taxpayers earlier this year.
“I think the president’s been very clear that he’s supportive of another stimulus check,” White House Chief of Staff Mark Meadows said Monday.
At the end of June, Senate Majority Leader Mitch McConnell said the Senate will consider a second stimulus package in July.
“As you’ve heard suggested, I said back in March we would take another look at this… probably in July… take a snapshot of where we are, both on the healthy front and the economic recovery front, and decide at that point what needs to be done further,”
McConnell said last week.
Market implications
In late March, President Trump signed a $3 trillion stimulus package into law that included one-time payments of up to $1,200 for eligible Americans.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed.
A second check or prepaid debit card as the pandemic continues will only go to serve the inflation playbook in financial markets and that is supportive of gold prices and potentially damaging for the US dollar, longer-tem.
Long-term inflation expectations are rising in sync with risk-on behavior, while rates-vol remains deeply constrained amid uber-supportive policy, fueling a process that weighs on real yields,” analysts at TD Securities explained.
With 10y breakevens continuing to print new post-Covid highs, the normalization in inflation expectations may remain a powerful driver lifting gold prices deeper into $1,800/oz territory.
And, looking forward, the world-war era fiscal and central bank stimulus, the change in the central bank template that will incorporate ‘symmetric inflation targets’ and unwinding globalization, also suggest that inflation-hedge assets may grow in popularity.
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Breaking: Gold hits $1,795, highest since 2012, levels to watch
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