US Discusses Additional $1,222 Trillion Stimulus Package Amid COVID-19 Economic Downturn

Pelosi and President Trump Reach Consensus on Additional Direct Individual Support

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jaehee] In response to the economic recession caused by the novel coronavirus disease (COVID-19), the U.S. political sphere has begun preparing a large-scale additional stimulus package.

According to Bloomberg News on the 6th (local time), Nancy Pelosi, Speaker of the House of Representatives from the Democratic Party, stated during a conference call with Democratic House members that an additional stimulus package of at least $1 trillion (approximately 1,222 trillion KRW) is necessary.

Speaker Pelosi emphasized that the additional stimulus package should include ▲ additional direct cash support to individuals ▲ extension of unemployment insurance ▲ expansion of funding for food stamps (nutritional support for low-income groups) ▲ and increased payroll support funds through loans to small and medium-sized enterprises.

At the same time, Pelosi added that the package should include support measures for state and local governments. It is reported that she particularly stressed the need to support small local governments with populations under 500,000.

Speaker Pelosi urged her party members to pass the additional stimulus bill within this month.

Earlier, President Donald Trump also requested additional funds for small business loans from Congress on the 3rd.

During the White House daily briefing that day, President Trump said he is "seriously considering" additional cash support to individual Americans.

The consensus between President Trump and Speaker Pelosi, who belong to different political parties, on the necessity of additional stimulus measures appears to reflect the significant economic impact of COVID-19.

Janet Yellen, former Chair of the Federal Reserve (Fed), who participated in the Democratic House members' conference call that day, said she expects the U.S. gross domestic product (GDP) to decrease by 30% this year. On the same day, Yellen also stated on CNBC that the GDP in the second quarter of this year will decline by at least 30%.

Yellen predicted that the current U.S. unemployment rate has reached at least 13%, and that the number of unemployment insurance claims this week is expected to exceed last week's record high.

Furthermore, Yellen emphasized the need for additional financial support for local governments and reportedly argued that the Federal Housing Finance Agency (FHFA) should intervene to prevent mass foreclosures.

Meanwhile, Chuck Schumer, Democratic Senate Majority Leader, called on the White House to appoint a "czar" (a Russian term meaning king) to oversee the production and distribution of medical supplies and equipment.

This content was produced with the assistance of AI translation services.