President Joe Biden’s pandemic’s economic fallout, it could be months until the payments arrive, analysts say.proposes a third round of stimulus checks of $1,400 for most Americans. Yet while that could extend a helping hand to millions of households still suffering from the
The price tag for the relief package, called the American Rescue Plan, is likely to face pushback from Republican lawmakers, who last year resisted Democratic efforts to pass a $2 trillion bill. Heights Securities analyst Hunter Hammond expects the ultimate package to be trimmed to $1 trillion or $1.5 trillion. But most analysts think lawmakers on both sides of the aisle will back the $1,400 direct payments, which economists view as a lifeline for many cash-strapped workers who lost their jobs or have seen their income plummet during the pandemic.
Support for another stimulus package may gain steam given several developments that point to widening economic distress as the pandemic worsens, according to Ed Mills, an analyst with investment bank Raymond James. A weaker outlook for the labor market, with a bigger-than-expectedduring the first week of January, as well as record number of COVID-19 infections and deaths, could push lawmakers to support Mr. Biden’s plan for additional stimulus, analysts say.