President Joe BidenWe propose a third round of stimulus checks for $ 1,400 for most Americans. According to analysts, it can reach out to millions of households still suffering from the economic consequences of a pandemic, while payments can take months to arrive.
A bailout package price tag called the American Rescue Plan could face backlash from Republicans who resisted Democratic efforts to pass a $ 2 trillion bill last year. Heights Securities analyst Hunter Hammond expects the final package to be reduced to $ 1 trillion or $ 1.5 trillion. However, most analysts believe that lawmakers on both sides of the aisle will boost direct payments of $ 1,400. This is seen by economists as the lifeline of many underfunded workers who lost their jobs or plummeted income during a pandemic.
According to Ed Mills, an analyst at investment bank Raymond James, support for another stimulus gains momentum given some developments pointing out that economic distress will increase as the pandemic worsens. there is a possibility.Labor market outlook is weak and larger than expectedAccording to analysts, the first week of January and a record number of COVID-19 infections and deaths have led lawmakers to support Mr. Biden’s additional stimulus program.
“The market returned to expectations that a $ 1.9 trillion” American rescue plan “was announced early in the Biden administration, and fiscal stimulus was almost inevitable,” Mills said in a January 15 report. There are. ” We expect additional financial support to continue and the timing and scope to be very fluid. “
According to analysts, the main question is whether Republicans will support the package, or whether the Biden administration will eventually address spending priorities by splitting its spending proposal into two bills.
Janet Yellen, elected Treasury Secretary by President Joe Biden, said on January 19 that the next administration will focus on winning a swift passage of the $ 1.9 trillion pandemic bailout program. Yellen argued that additional stimulus, including Mr. Biden’s proposal for a minimum wage of $ 15, was needed to prevent the economic “scars of this pandemic.”
Plans to provide more direct assistance to middle-class and middle-class households may help raise GDP by 0.7%, but other measures on the bill, such as raising the minimum wage and helping the state. Could boost GDP growth by 1.5%. In a January 18 report from Gregory Dako, Chief of Oxford Economics, US Economist.
Here’s what analysts are predicting about $ 1,400 checks and other spending proposals:
Is the $ 1,400 check a completed transaction?
Probably so, according to Wall Street and political analysts. There is growing support among Republicans for additional stimuli for low- and middle-income households, and the latest efforts to pass the $ 2,000 stimulus check have gained bipartisan support.
Hammond of Height Securities predicts that in the first three months of 2021, there is an 85% chance that a reduced package will pass. Checks may be included in the small package for continued support for additional direct assistance to the household.
“We believe there is support for smaller packages, including $ 1,400 checks, more health care funding, support for small businesses, and some state and local assistance,” Mills said. Told.
When will I receive my $ 1,400 check?
Alec Phillips, Chief US Political Economist at Goldman Sachs, believes the package could be delivered from mid-February to mid-March. After the bailout bill has passed parliament, it must be signed by the president. The IRS then distributes funds through direct deposits, postal checks, and prepaid debit cards.
House is likely to vote for Biden’s American rescue plan in the first week of February, according to a January 22 survey note, according to Height Securities Hammond.
The first incentive payments in April 2020 paid $ 1,200 to eligible adults and $ 500 per child, which typically took two weeks to several months to reach people. For the second round check, which sent $ 600 to each eligible adult and child, it took about a week for the funds to arrive directly in deposit.
But in some cases, people have experiencedThere is a problem with your account information.President Biden signs order on January 22 To streamline the delivery of stimulating checks for those who have not yet received direct payment.
Assuming Congress passes a new bailout bill by mid-February based on previous stimulus payments, checks could arrive in a bank account by late February, which is probably the best scenario. .. If the parcel has passed by the end of March, the check may arrive by the beginning of April.
Analysts expect these timeframes to have at least 10 Republican senators support the package and cast 60 votes in the Senate to overcome the possibility of filibuster and pass the bill. That is. If the Biden administration fails to attract enough Republican support, stimulus supporters can move to go through it under a process known as budget adjustment. The parliamentary operation only requires a majority vote for legislation to become law, which can delay passage.
Will more people qualify for checks?
If Mr. Biden’s plan goes as he imagined, millions of Americans can qualify for checks. One of his goals is to increase payments to adult dependents who are excluded from the first two checks.
The exclusion meant that college students who were alleged to be dependents on their parents’ taxes, and adults with disabilities who were alleged to be dependents were not eligible for checks. We also excluded high school students aged 17 or 18 because the previous two bailout checks defined the child as a child under the age of 17.
Do Americans Really Need Money?
Signs show millions of households facing rising financial difficulties as the pandemic worsens, causing some companies to dismiss personnel and save time.
In December, employment throughout the United States declined., Because the virus weighed particularly heavily on restaurants, bars and other service-related businesses.Last week, the number of Americans applying for weekly unemployment insurance claims on behalf of layoffs ..
Economic needs are greatest among low-income households. Still, according to a recent Credit Karma survey, nearly half of households with incomes above $ 150,000 say they need to check stimulus measures for financial stability. In a November survey, TransUnion found that about 6 out of 10 households face financial difficulties.
Credit Karma Chief Human Resources Officer Colleen McCreeley emailed CBS MoneyWatch that an additional stimulus fund is “essential to the financial stability of many Americans, including those who appear to be high-income.” Said. “As the pandemic prolongs, Americans continue to feel financially difficult.”
According to a new survey by Bankrate.com, more than half of Americans say that a second stimulus check of $ 600 per person will not last for more than a month. Most people said they would spend the money to pay for their household and daily necessities.
Overall, Mr Biden’s stimulus will be around $ 3,500 per household, according to Oxford Economics. In other measures to help workers and support the economy, he also wants to increase the enhanced unemployment allowance to $ 400 a week and is calling for a federal increase...
Currently, the $ 7.25 / hour wage floor hasn’t been raised since 2009, but many states and cities across the United States are raising local minimum wages.
-With report from Associated Press.
Third Stimulation Check: When can I get a $ 1,400 check?
Source link Third Stimulation Check: When can I get a $ 1,400 check?