Maybe you don’t need that second $ 1,200 incentive check?
More economists and politicians think after lower figures than employment: On Friday we found that the unemployment rate fell from 10.2% in July to 8.4% in August, higher than the consensus estimate of 9.8%.
And this strong employment report is already likely to ease Congress with the next economic stimulus package. On Monday, Goldman Sachs projected the next stimulus package to hit $ 1.5 trillion, down from its previous forecast of $ 2 trillion.
Goldman Sachs projects that the next stimulus bill will include $ 400 a week in improved unemployment benefits, extra help for small businesses and “modest” state tax aid. However, Goldman Sachs researchers do not anticipate a second round of $ 1,200 stimulus controls.
“There is solid support for another round of individual payments and concerns may increase over the overall size of the package,” researchers at Goldman Sachs said.
Republican and Democratic leaders have struggled for months to agree on a more comprehensive stimulus package. Republicans currently offer $ 1.3 trillion, while Democrats offer $ 2.2 trillion.
House Speaker Nancy Pelosi said earlier this month that Democrats refuse to cut less than $ 2 trillion. For Goldman Sachs’ forecasts to be true, Democrats would have to step back from that stance.
And while political support for the stimulus controls may be waning, Democratic and Republican leaders have yet to say publicly that they are excluding it from their stimulus request. The second round of stimulus controls would cost about $ 290 billion, the price of the first round of stimulus controls.
For now it appears to be a waiting game: The consensus on Capitol Hill is that nothing will be signed before the end of September, when US lawmakers must approve more federal funding to avoid a government shutdown.
