US lawmakers, Trump reach deal on massive stimulus package

The White House and Senate leaders on Wednesday announced a bipartisan agreement on a massive stimulus package – estimated at roughly 2 trillion dollars in direct relief – that is meant to cushion the economic fallout of the coronavirus pandemic.

The package, unprecedented in its size and scope, comes as much of the US economy faces a possible recession, with large swathes of the nation have ground to halt in a bid to blunt the coronavirus outbreak.

“After days of intense discussions, the Senate has reached a bipartisan agreement on a historic relief package for this pandemic,” McConnell said in a tweet in the early hours of Wednesday morning. “We’re going to pass this legislation later today.” 

Chuck Schumer, the leader of the Democrats in the Senate, said the aid package agreement is the “largest rescue package in American history.” 

“This is not a moment of celebration but one of necessity,” he added.

The package is expected to include direct cash payments to workers on top of loans for businesses that may be forgiven if they are used to keep employees on the payroll.

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The package will also be coupled with four trillion dollars in lending from the Federal Reserve, according to White House economic adviser Larry Kudlow, who spoke earlier on Tuesday.

The announcement came after five days of marathon negotiations between Democrats, Republicans and the White House.

Wall Street had rallied earlier on Tuesday on news of an imminent deal, with the Dow Jones Industrial Average posting one of its best days ever, surging over 11 per cent at the close.

The deal comes as the coronavirus outbreak is spreading across the US, with New York at its national epicentre.

President Donald Trump said Tuesday that he wants the US economy to largely reopen for business by the Easter holiday on April 12, despite warnings from public health officials and a rapidly expanding coronavirus outbreak that is doubling every three days in New York state.

“I would love to have the country opened up and just raring to go by Easter,” Trump said in an interview with Fox News, claiming that the repercussions of the shutdown measures could “destroy” the country and cause “thousands” of suicides.

Standing alongside Trump at a press briefing, Anthony Fauci, one of the top US health officials handling the outbreak, offered a much more cautious view, saying Trump’s timeline is “very flexible.” 

Fauci said that as mass testing becomes available in the US, authorities will be better able to tailor restrictions depending on the geographical severity.

Public health experts say the economic closures are needed to slow the spread of the virus, because hospitals could be overwhelmed with sick patients, and that Trump’s target date would likely undermine containment efforts.

The rate of new coronavirus infections in New York is doubling about every three days, a “dramatic” increase that means the peak will be higher and sooner than anticipated, the state’s governor said Tuesday.

He said that the apex of coronavirus cases could arrive in 14 to 21 days – the same time Trump wants the US shutdown lifted.

“We haven’t flattened the curve, and the curve is actually increasing,” New York State Governor Andrew Cuomo said at a news conference on Tuesday.

New York has revised upward its estimated need of hospital beds from 110,000 up to 140,000, as well as its need for other critical medical supplies. The state currently has 53,000 hospital beds, Cuomo said.

As of Tuesday, New York had 25,665 confirmed coronavirus cases, according to Cuomo, almost ten times more than the second hardest-hit US state, California. Nationally the death toll is over 670, according to data collected by Johns Hopkins University.

Hours after Trump said he wants the country “opened up” by Easter, New York City Mayor Bill de Blasio said that would be “absolutely inconceivable” for his city.

“April will unquestionably be worse than March,” de Blasio said. The mayor also announced the release of 300 non-violent prisoners due to concerns over an outbreak in the jails.

On Tuesday Deborah Birx, one the top officials on the White House’s coronavirus task force, called on all New Yorkers who have recently left the city to self-quarantine for two weeks to prevent the virus from spreading. (dpa)