CARES Act Passes Congress; Stimulus Bill Next on Agenda

The only story in Washington, D.C., this week has been the speedy action by the House and Senate to pass the $2 trillion relief package to send money to most Americans, boost state unemployment insurance, provide assistance to small businesses, and create a $500 billion stabilization fund to rescue large businesses caught in the changed economic reality of the coronavirus spread.

With passage of the CARES Act the Congress will adjourn for a month and come back in late April in order to consider additional bills to deal with coronavirus crisis. The CARES Act is a relief measure and the next bill is likely to be a stimulus act to help boost consumer spending and getting companies big and small to open their doors.

Policymaker focus will now turn to implementation: how fast can the checks be sent out, procedures for getting money to small businesses, a structure for the $500 billion stabilization fund. Obviously implementing a $2 trillion program will be a management challenge which is unprecedented and will be a real test for the Trump Administration.

2020 campaign

If the money goes out smoothly both to individuals and small businesses, and the Stabilization Fund saves jobs without abuses the success is likely to bolster the position of President Trump as the 2020 campaign proceeds.

Former Vice President Joe Biden sits at his home while the President gets daily exposure reporting to the nation about developments in the fight against the coronavirus. Biden is hampered by being the obvious Democratic candidate but not the official candidate, given the delayed primary schedule means he is unable to get the delegates he needs to clinch the nomination.

Senator Bernie Sanders still has a mathematical possibility to win the nomination but most of the states where primaries will occur in May and June are states that are likely to be won by Biden. He needs to work with Sanders to find a way to end the process and allow any wounds caused during the primaries to heal, so that the former vice president can move to pick his own vice-presidential candidate and organize for the general election.

Figure: Top Trump Tweets

CARES Act Passes Congress; Stimulus Bill Next on Agenda
Source: MarketWatch
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