US Coronavirus Packages: $3K per Family, $4 Trillion Fed, $2 Trillion Aid

Financing programs to help the U.S. economy pull out of the coronavirus crisis could be worth $4 trillion, Treasury Secretary Steven Mnuchin said Sunday.

The Federal Reserve would likely put up approximately $700 billion as part of grants and loans authorized under the bill.

The liquidity efforts come along with fiscal help that could be worth $2 trillion, according to statements from Mnuchin and Larry Kudlow, the National Economic Council director. Unemployment claims next week could total three million, Bank of America said this week, as some workers get laid off without severance, paid leave or health insurance. Hospitals are also facing equipment and staff shortages amid the crisis.

There will be direct checks for about $3000 per family. There will be money or loans for small business.

The multi-trillion dollar packages could be passed today.

Nextbigfuture notes that some are concerned that these and follow-on measures could take the national debt to $30 trillion or more. I do not think this will be an issue because interest rates will be about zero for the next decade. There was negative interest rates in Europe and Japan even before this crisis. The US, China, India and South Asia were the only engines of global economic growth. The crisis and its after-effects means all major countries will be in the same situation.

SOURCES- CNBC, Analysis Brian Wang
Written By Brian Wang, Nextbigfuture.com

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