Finally, We Will Know If A Stimulus Will Pass

Latest Stimulus Talks

The government has been funding its agencies through continuing resolutions since September. The latest 1-week resolution lasts until December 18th. This yearly spending bill is important because the stimulus could be added to it as well. Republicans are currently looking through the 400-page $1.4 trillion bill. Since the deadline is this week and the year is almost over, we will know if a stimulus will pass by the end of the week.

The latest news is the $908 billion stimulus will be separated. $748 billion is for funding for the parts they agree on like schools and healthcare. $160 billion is for the temporary liability shield and money for local governments (parts they disagree on). 

That sounds like we will get a $748 billion stimulus with no help for local governments nor liability shields. WE don’t see how there is a compromise on the most contentious issues. We can look more closely at the bill when it passes. Something is better than nothing, but we won’t get the best possible plan.

It’s usually tough to pass bills before elections. Now, we are back there again because of the Georgia Senates races. Usually, special elections don’t determine the balance of power of the government, but here we are. The latest polls have one race tied and Loeffler (GOP) up by 3 points. 

If these were in separate states, it’s unlikely the Dems win both which is what they need to tie the Senate. However, if one race has the polls too high for the GOP, the other one does too because it’s the same people voting.

The results will cause stocks to react either way because there are no clear leaders. The market expects there to be a divided government. 

Moderna Is Up Next

Potentially on Friday, the FDA will approve Moderna’s vaccine. America will ship 6 million doses once it is approved which is double Pfizer’s 2.9 million. Pfizer had a minor delay because of quality control issues. If Moderna doesn’t, both will be going out simultaneously by the end of the year. 

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