Economic Team Introduction Press Conference... "Preparing Legislation to Propose to Congress"
US Congress Democrats and Republicans Present $908 Billion Stimulus Package
Mnuchin, Powell, and Others Also Urge Stimulus
[Asia Economy New York=Correspondent Baek Jong-min] President-elect Joe Biden of the United States stated that the pre-inauguration stimulus package is just the beginning and expressed his intention to introduce more economic stimulus bills after taking office. On the same day, the U.S. Congress made a bipartisan effort to draft a $900 billion stimulus package. However, with the Republican leadership showing a lukewarm response, it remains uncertain whether the package will pass during President Donald Trump's term.
According to U.S. media including Politico on the 1st (local time), Biden introduced his economic team, including Treasury Secretary nominee Janet Yellen, in Wilmington, Delaware, and said that the new coronavirus disease (COVID-19) stimulus package passing through Congress before his inauguration is "at best just the beginning." He added that his economic team is preparing bills for the new administration to propose to the next Congress to address economic recovery and the COVID-19 pandemic.
On the same day, Congress drafted a bipartisan stimulus package worth $908 billion, and Biden's remarks were interpreted to mean that actual support is more important than the size of the package.
Nominee Yellen also emphasized at the event that "it is essential to act urgently to solve economic problems," stressing the need for swift passage of the economic support bill. She expressed concern that the U.S. is facing a historic crisis and that failure to take action would lead to a recession and greater damage. She added, "We will focus on restoring America's standing, regaining public trust, and addressing economic inequality."
With the bipartisan $908 billion stimulus package proposed in Congress, related parties also accelerated their movements. This package represents a compromise between the $650 billion proposed by the Republicans and the up to $2.4 trillion desired by the Democrats. House Speaker Nancy Pelosi stated in a press release that she spoke with Treasury Secretary Steven Mnuchin and expressed hope that the administration would accept the bipartisan proposal from lawmakers. She added that Mnuchin said he would review the bipartisan lawmakers' proposal. This was their first conversation since the presidential election on the 3rd of last month. After introducing his economic team, Biden also said as he left the venue, "I will look into the plan."
Local media expect Congress to speed up the passage of the stimulus package as the federal government budget must be finalized by the 11th. Failure to finalize the budget by that date could lead to a government shutdown. However, Senate Minority Leader Mitch McConnell maintained a negative stance on the bipartisan stimulus bill and warned that reaching an agreement would not be easy.
Treasury Secretary Mnuchin and Federal Reserve Chairman Jerome Powell also joined the stimulus debate. Mnuchin appeared before the Senate and reaffirmed his opposition to the large-scale additional stimulus package demanded by the Democrats, stating, "I remain convinced that a targeted fiscal package is the most appropriate response for the federal government." On the other hand, Chairman Powell emphasized, "Fiscal support will help move the economy."
The pace of U.S. economic recovery is slower than expected. The Washington Post (WP) reported, citing the National Retail Federation, that despite record online sales on Black Friday, the number of shoppers from Thanksgiving through Cyber Monday (November 26?30) was 186 million, slightly down from the same period last year. The average purchase amount per shopper during the same period also fell by 14% to $362.
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