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US Republican Senate Majority Leader Mitch McConnell rejected a Senate Democrat request to pass a bill that would transfer an additional $1400 to each American (bringing the total amount sent to each American in the latest batch of Covid-19 aid to $2000) by unanimous consent, reported Reuters. The bill will still be voted on at some point and, at this point, seems unlikely to pass. When that vote will take place is currently unclear.  

Senate members on both sides of the House might, however, be feeling the pressure to pass further Covid-19 aid ahead of the Georgia run-off election in early January – the Democrats need to win both of the two seats that are up for grabs to clinch a majority in the Senate, something which would be a gamechanger for fiscal policy under the Biden administration.

Market reaction

USD saw mild upside, enough to push the Dollar Index back to the north of the 90.00 level, while the S&P 500 fell to fresh lows of the day just above 3730 and now trades lower by around 0.1%.