Hopefully the printing presses that create currency for the U.S. Treasury are in good working condition, because by the sounds of things, they will be pushed to the limits shortly.
Word is leaking on President-elect Joe Biden’s planned stimulus package, which could be as big as $2 trillion according to a CNN report. Details of his plan are expected Thursday night, and highlights include a boost to the most recent $600 direct payments to Americans, extensions on unemployment insurance and more support for local and state governments. The new round of stimulus checks could be as much as $1,400.
Wall Street seemed to like what they were hearing, as the Dow Jones Industrial Average gained 118 points, and the Nasdaq hit an all-time high, rising 0.7%.
“Stocks are extending their gains thanks to ongoing stability in the ‘three pillars’ (stimulus, vaccines, and earnings). The $2T number is about inline w/expectations and investors need to watch yields very closely…All the Trump impeachment noise is largely irrelevant to markets,” Adam Crisafulli, an analyst for Vital Knowledge told CNBC.
The Biden administration takes over on January 20, and plans to work with Congress to get this stimulus package passed quickly, although there is a potential self-inflicted delay for the Dems they may be facing. A Senate trial for President Trump after he was impeached by the House on Wednesday.
Biden is expected to deliver a prime time address Thursday night to unveil details of his stimulus package. He said in a statement Wednesday “I hope that the Senate leadership will find a way to deal with their Constitutional responsibilities on impeachment while also working on the other urgent business of this nation.”