Joe Biden's $1.9-trillion plan offers bridge for hard-hit economy

US President-elect Joe Biden’s (pictured) proposal to pour $1.9 trillion into a hobbled economy could lay the foundation for a surge in jobs and spending that many economists say is needed to avoid long-term damage from a record-breaking pandemic recession.

 

Analysts had already begun marking up their forecasts for economic growth this year after last week’s elections in Georgia delivered control of both houses of Congress to Democrats. Many, though, had pencilled in smaller packages, more along the lines of the $892 billion stimulus passed in December.

 

The incoming Democratic administration’s proposed package provides targeted aid that economists say delivers the most effective economic boost, including an increase to the current extra weekly benefit to the unemployed, to $400 from $300. It would also direct $170 billion toward reopening schools, the closure of which in many parts of the country has forced millions of workers, particularly women, to leave their jobs. And it would put an extra $1,400 into the hands of most Americans.

 

Powell bats down bond-taper talk

 

Federal Reserve Chair Jerome Powell sought to stamp out talk of a premature reduction in the central bank’s massive bond-buying campaign, saying “now is not the time” to hold that discussion. “We know we need to be very careful in communicating about asset purchases,” he said Thursday during a virtual discussion. “Now is not the time to be talking about exit. I think that is another lesson of the global financial crisis, is be careful not to exit too early.”