— This is the script of CNBC's news report for China's CCTV on March 26, 2020, Thursday.
How to spend money? The two U.S. parties have disagreements on this issue again. A third round of economic stimulus, which was already expected to be in the offing, hit snags again before a third vote.
Four republicans are unhappy with the details of the plan for unemployment benefits. They think the relief fund that some unemployed people will be received may be higher that their original salary, that probably encourage some people to quit jobs or companies to layoff. Senator Bernie Sanders, a democrat, said that if the republicans did not drop their opposition to this plan, he would delay it and seek stricter limits on the benefits of the $500 billion bailout. The stimulus package needs only a simple majority in the senate. So, the lawmakers' disagreement will not change the fate of its eventual passage but may delay the process.
After the senate vote, the plan still needs to be sent to the house for a vote. And it needs President Trump's signature to take effect. Although these two sides have no suspense, the house will not vote until at least 24 hours after the senate votes，in order to give lawmakers time to prepare. While some argue that a day or a few days' delay is not a big deal, these benefits are a critical for cash-hungry businesses and those who are about to lose their jobs or have already lost theirs.
Former Director of the United States National Economic Council
At this point, we need to go into execution mode, we need to go to aid very quickly, I heard Mnuchin talking at the press conference today, that it is taking potentially until next Friday, to get small business to get the money they need to pay their payrolls, that's too long.
What specific mechanisms will the relief programme be implemented through after all the necessary procedures have been adopted, and how will be the effect, are the key points we need to keep an eye in the next 1 to 2 months. On a fundamental level, there is no doubt that America's economy will shrank in the second quarter. Ben Bernanke, the former chairman of the federal reserve, says this recession is less like the great depression of the 1930s and more like a big snowstorm or a natural disaster. The recession may be great, but it may be short, and the rebound may be swift. At the same time, Bernanke told us that what happens next will depend on how the outbreak develops and how businesses and jobs are affected during the shutdown. For the latter, the implementation of the stimulus plan is very important.
Former Chair of the Federal Reserve
Well, it is possible this could be a very sharp, short, I hope, short recession in the next quarter or two because everything is shutting down, of course.
So, if there's not too much damage done to the workforce, to the businesses during the shutdown period, however long that may be, then we could see a fairly quick rebound. But there's also the possibility that bankruptcies and people being laid off and we're not finding jobs during this shutdown period means it takes longer for things to get back to normal.
Next up, financial markets are paying close attention to the number of new claims for unemployment benefits, which will be released on Thursday.
This will help US understand just how much the outbreak has hit the us job market, the market is now predicting a staggering number, possibly in the millions.
Providing timely and necessary assistance to these people is one of the priorities of the U.S. We will keep an eye on this issue.