There ‘Definitely’ Will Be Another Stimulus Package, Trump Economic Adviser Says

TOPLINE

Senior White House Adviser Kevin Hassett said during an interview on Fox News Saturday morning that there “definitely” will be another stimulus package, one day after a surprisingly positive jobs report threw the possibility of another coronavirus aid package into question. 

KEY FACTS

Key background

House Democrats pushed through a $3 trillion relief bill last month that Republican senators rejected swiftly. The bill included more $1200 cash payments for Americans and an extension to the expanded unemployment insurance program set to January 31, 2021 (the program is set to run out at the end of July.)  GOP lawmakers want to do away with relief programs such as the expanded unemployment insurance program because they argue it disincentives people to work. For weeks, though, the party has been unable to coalesce around one proposal. The job report from Friday could further derail those efforts. 

Surprising fact

New estimates from the Congressional Budget Office show that extending the extended unemployment benefits until 2021 would boost consumer spending but stifle growth in other areas. 

Crucial quote

Before Friday’s job numbers, House Speaker Nancy Pelosi (D-Calif.) had criticized Majority Leader Mitch McConnell (R-Ky.) for not acting more swiftly. “You want a pause? Tell that to the virus,” Pelosi said during a press conference on May 28, referring to McConnell’s hesitation. 

Further reading

Extending The $600 Unemployment Benefit Would Hurt The Economy In 2021: CBO Report (Forbes)

Pelosi Attacks McConnell For Stimulus Bill Delay: ‘You Want A Pause? Tell That To The Virus’ (Forbes)

Unemployment Fell To 13.3% In May After Shocking Rebound (Forbes)

Here’s How May’s Surprising Jobs Report Could Derail The Next Stimulus Bill (Forbes)

Surprise job gains narrow the White House vision for coronavirus relief, but Democrats still want to go big (CNBC)