Following the hints that US Treasury Secretary Steve Mnuchin is planning injection into the exchange stabilization fund, Bloomberg came out with the news that the diplomat adds another figure into his likely heavy stimulus plan that is on the Senate’s door. The news said that the figure had reached $1.3 trillion for the next round of fiscal stimulus Congress plans to take up after the Senate passes a smaller package of measures that the House already passed.
Key quotes
In a proposal sent to lawmakers Wednesday, Mnuchin’s department laid out a plan to spend $500 billion in total on checks to individuals that would start landing in bank accounts in less than three weeks, according to a document seen by Bloomberg News.
Mnuchin also proposed that lawmakers approve $50 billion in loans to the distressed airline sector, rejecting the industry’s request of nearly $30 billion in grants.
Mnuchin proposed sending electronic payments to individuals on April 6 and May 18, in equal value, according to the document. The amount of the payment would be linked to income and number of children in a family.
FX implications
The news fails to offer any immediate market move but the risk-tone remains under pressure amid fears that how the global policymakers will be able to fund and recover the amount of stimulus that is making rounds nowadays. While portraying the risk-off, Wall Street jumps into the sea of red but the Treasury yields remain positive.
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