últimas notícias

• Biden’s economic advisors fear another recession is looming, according to a report in The New York Times.
• The impasse over another stimulus package as well as the prospect of millions of people losing unemployment benefits is leading them to press congressional Democrats to pass another aid package very quickly.
• The surge of virus cases is causing another wave of restrictions and closures that experts say could deal a blow to the economic recovery.
• Visit Business Insider’s homepage for more stories.

President-elect Joe Biden’s economic advisors are pressing congressional Democrats to quickly strike a stimulus deal with Republicans, fearing the US is on course for a renewed recession with virus cases surging and the absence of a new aid package.

The New York Times reported on Sunday that the Biden team is also increasingly worried about the prospect of millions of Americans losing unemployment benefits next month along with the expiration of federal protections on evictions and student loan deferrals.

The threat of a  “double-dip recession” is heightening the urgency to reach an agreement on a new economic relief package, even if it’s not as expansive as House Speaker Nancy Pelosi and Senate minority leader Chuck Schumer sought, the Times reported.

The Biden transition team did not immediately respond to a request for comment. Biden spokesperson Andrew Bates told the Washington Post: “This is incorrect. The president-elect fully supports the Speaker and Leader in their negotiations.”

Republicans and Democrats have clashed for months on the size and scope of a stimulus package to prop up the economy. Senate Majority Leader Mitch McConnell has sought a slimmer aid bill similar to the $500 billion measure that Democrats rejected twice in the past few months. 

Instead, congressional Democrats favor a broader multitrillion dollar plan that would include $1,200 stimulus checks, $600 federal unemployment benefits, virus testing and tracing funds as well as state aid. The impasse threatens to punt the arrival of federal aid until after Biden assumes office in January.

Since his election victory over President Donald Trump, Biden has jumped in on discussions of another economic aid package. On Friday, Pelosi, Schumer, and Biden reiterated their calls for Congress to pass another relief plan before the end of the lame duck session.

But a recent spike in virus cases has prompted another wave of restrictions and business closures in many parts of the country, and experts warn that a delay in federal aid could seriously harm the economy at a vulnerable moment in its recovery. Jobless claims spiked last week for the first time since October, and new hiring has slowed.

“In the current environment, Mitch McConnell is unlikely to agree to a $2T package,” Arindrajit Dube, an economist and professor at University of Massachussetts Amherst, said on Twitter. “It’s much better to make difficult compromises than to enter the new year without any relief. At some point we have to cut our losses. Otherwise the pain will be greater.”

Analysts at JP Morgan projected on Monday the economy would contract in the first quarter of 2021 by 1% on an annualized basis.