Wall Street has a pulse again after President Trump’s “stimulating” announcement on Tuesday. A “big and bold” stimulus relief package is on the horizon. “We’re looking at sending checks to Americans immediately,” Treasury Secretary Steve Mnuchin announced at the daily White House briefing.
Huge stimulus brings bold economic support
When the White House announced a bold new economic stimulus plan, the effect was instant. The Dow “jumped 800 points” right after the news broke. President Donald Trump is working closely with Treasury Secretary Mnuchin to put cash in the pockets of American Citizens. “Some people should get $1,000.”
“Americans need cash now, and I mean now in the next two weeks,” Mnuchin declared, speaking from the White House press briefing room. He is “talking with congressional leaders on a plan to send checks immediately.” Another way that the administration is easing the burden is by offering 90 days of tax relief. Mnuchin announced, “individuals can defer tax payments up to $1 million and corporations up to $10 million for 90 days, interest and penalty-free.”
Both parties agree that the best way to solve the crisis is by throwing money at it. Lot’s of money. Leaders on both sides of the congressional aisle are “expressing a heightened urgency to spend hundreds of billions of dollars to prop up growth,” CBS reports. The Senate is looking over the measure already passed by the House last week. Senate Democrat Chuck Schumer threw a stimulus package of his own on the table “worth $750 billion.”
Stock market finally finds bottom
Stock prices, which were already on a steady decline, plunged into free-fall Monday as the floor dropped out. Experts are calling it “Wall Street’s worst day since the epic “Black Monday” crash in 1987.”
The bottom still wasn’t in sight on Tuesday until Trump and Mnuchin announced the great news at the Coronavirus Task Force briefing. The stimulus measures combined with the previous day’s Federal Reserve decision to ease lending for banks and businesses did the trick. Both the S&P 500 and Nasdaq were up “more than 5%.”
Economists predict U.S. is in for a recession affecting the first half of the year “as consumers slash their spending.” Ian Shepherdson, chief economist of Pantheon Economics, believes corporate “earnings will crater from the first quarter onwards, but should begin to recover by the end of the year.”
Crisis could stretch into Summer
On Monday, President Trump acknowledged that the outbreak crisis could be with us until “July or August,” and there is no doubt in his mind a recession is inevitable. He understands the way that Americans are scrambling to “get a grip on an unpredictable virus that has disrupted Americans in all walks of life.” He knows it’s tough but assures the public we’ll get through it.
“We’re going to win and I think we’re going to win faster than people think, I hope.” The best way to get the virus under control is through social-distancing. “We’re asking our older generation to stay in their homes,” coronavirus adviser Deborah Birx explains. “We’re asking the younger generation to stop going out.”
One of the main reasons President Trump is behind the cash payments direct to citizens is so they can be reassured that staying home in isolation won’t wipe them out financially. The best thing patriotic Americans can do right now, Trump insists is, “enjoy their living room.”