NEW YORK (Reuters) - President-elect Joe Biden will unveil a stimulus proposal on Thursday designed to jump-start the economy during the coronavirus pandemic and help minority communities with around $1.9 trillion in aid.
The stimulus package has a price tag of around $1.9 trillion, the New York Times reported, and includes a commitment for $1,400 stimulus checks, according to a source familiar with the proposal.
The incoming administration will work with Congress on the quick stimulus package after Biden takes office on Jan. 20, although the impeachment of outgoing President Donald Trump threatens to consume lawmakers in the initial weeks.
JAKE DOLLARHIDE, CHIEF EXECUTIVE OFFICER, LONGBOW ASSET MANAGEMENT, TULSA, OKLAHOMA
“I’m not looking for a big bump in the stock market just because the stimulus is going to happen. It’s one piece in the overall puzzle, it bridges the gap to getting restaurant workers, airline workers and other employees back to work. Once we had the outcome of the Georgia runoff election, you knew the stimulus was going to happen.”
PETER TUZ, PRESIDENT, CHASE INVESTMENT COUNSEL, CHARLOTTESVILLE, VIRGINIA
“We knew a stimulus plan was coming tonight of some shape.”
“From what I have seen so far, the plan looks close to what I think the world has been expecting.”
“The market is looking at this plan to keep the economy strong in the first quarter and one hopes that by the second quarter and for the rest of the year enough of us will have been vaccinated where the economy is recovering on its own without these extraordinary aid packages.”
OLIVER PURSCHE, PRESIDENT AND CHIEF INVESTMENT OFFICER, BRONSON MEADOWS CAPITAL MANAGEMENT, FAIRFIELD, CONNECTICUT
“It’s a lot of money, but it’s within the range of what was expected. Even as we sold off into the close, small caps did well, and I think that’s because the $2,000 stimulus is going to overwhelming benefit lower-income consumers. They’re going to shop at smaller businesses.”
“You can always argue that more should be done. But that’s about as much as Congress can stomach right now, even with a Democratic majority. I have not seen anything that says this is it. There’s more down the road if needed. We’ve already heard from Chairman (Jerome) Powell that the Fed does not see an increase in interest rates any time soon. Inflation is at bay even though bond yields have moved up in the last week or two. I’m feeling pretty good about things. Generally there’s brighter skies ahead.”
CHUCK CARLSON, CHIEF EXECUTIVE OFFICER, HORIZON INVESTMENT SERVICES, HAMMOND, INDIANA
“You might as well start big. I think at some point while the conventional wisdom on Wall Street is the market is jazzed about the stimulus, but there could be too much of a good thing. There’s some realization that throwing another $2 trillion into the mix is overkill. It will be interesting if that starts to be the narrative. There is that underlying concern that inflation is going to get rekindled and this amount of money is certainly a concern.”
Compiled by the Global Finance & Markets Breaking News team
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