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$2T Coronavirus Stimulus To Pass Senate As Lawmakers, White House Reach Agreement

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$2T Coronavirus Stimulus To Pass Senate As Lawmakers, White House Reach Agreement

The United States senators and White House officials reached an agreement on the $2 trillion novel coronavirus (COVID-19) stimulus package early Wednesday, the Washington Post reported.

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What Happened

"At last we have a deal," McConnell Senate Majority Leader Mitch McConnell told the Senate, according to the Post.

"After days of intense discussion, the Senate has reached a bipartisan agreement on a historic relief package for this pandemic."

Minority Leader Chuck Schumer added that "[we're] going to take up and pass this package to care for those who are now caring for us, and help carry millions of Americans through these dark economic times."

The stimulus has provisions for providing $500 billion in loans and loan guarantees to businesses affected by the COVID-19 outbreak through the treasury department.

An additional $367 billion is dedicated to ensuring small businesses can continue to keep paying their employees. It also intends to provide $1,200 in direct payments to adult citizens and $500 to minors, in one of the largest capital infusions in U.S. history.

National Economic Council Director Larry Kudlow, adding that another $4 trillion through lending power for the Federal Reserve is included in the COVID-19 package, said that it would be the "single largest main street assistance program in the history of the U.S."

What's Next

The Post noted that the House could pass the bill unanimously since both political parties have reached a consensus. If even a single representative objects, the situation gets tricky, as a regular roll-call vote would be required, but the House is currently out of session.

Treasury Secretary Steven Mnuchin said President Donald Trump would "absolutely, absolutely, absolutely" sign the legislation once it has received the nod from both chambers of the Congress.

The legislation hit a roadblock when Democrats earlier objected to what they said was a priority given to corporations over average American workers in the legislation.

The Democrats also disagreed with the $500 billion assigned to the Treasury Department for bailing out businesses affected by the pandemic.

Price Action

Futures contracts traded higher early Wednesday following the surge in regular session earlier on anticipation over the legislation.

Dow Jones futures traded 1.29% higher at 20,873. Nasdaq 100 futures were up 7.5 points at 7,562.25. S&P 500 futures added 0.47% at 2,449.50.

 

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