Republicans Unveil $1tn Pandemic Recovery Plan

By Staff of Admiral Markets

Access To Financial Markets Made Easy • Jul 28, 2020 at 7:45 AM EDT

Republicans in the US Senate have unveiled a proposal to spend an additional $1 trillion to fight the economic impact caused by the coronavirus pandemic.

Republicans in the US Senate have unveiled a proposal to spend an additional $1 trillion to fight the economic impact caused by the coronavirus pandemic. This includes $100 billion for schools and payments of $1,200 to most American citizens. The plan is also set to cut emergency unemployment benefits by two-thirds.

US coronavirus stimulus

This brings the total stimulus package to more than $2.4 trillion. However, Democrats have already argued that the additional proposal is not enough causing a clash between both parties, less than 100 days away from the US Presidential election.

The US dollar rose slightly in the European session after the unveiling of the additional stimulus plan. This also placed pressure on US stock market indices which saw small declines in early trading.

The Democratic speaker of the House, Nancy Pelosi, has already called for negotiations with Republican leaders to find a compromise as they state the additional measures are still "inadequate". Most analysts believe a deal may not take shape until mid to late August which could be worrying for the Federal Reserve who are eager for a fiscal response to deal with the impact of the coronavirus.

US Federal Reserve chairman Jerome Powell is due to give a press conference on Wednesday 29 July at 19.30 BST.

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