Following months of deadlock between US lawmakers, a second Covid-19 stimulus bill was finally agreed upon last week to the relief of millions of Americans. However, it was soon revealed that the bill contained more shadier components than good, with an earmarked $15 billion towards payroll assistance for airlines, while those making under $75,000 per year only slated to receive a dismal $600 one-time stimulus check.
Shortly after the $2.3 trillion spending package was revealed, which allocated a mere $900 billion towards coronavirus relief and $1.4 trillion towards government spending, it was called a disgrace by US president Donald Trump, who threatened to veto the bill if serious amendments were not made. He instead demanded that direct payments to Americans be increased from $600 per individual to $2,000, while ‘wasteful’ foreign spending to the tune of $25 million for democracy and “gender” programs in Pakistan and $1.3 billion in military aid for Egypt be removed.
Nonetheless, Trump yesterday finally signed into law the entirety of the spending package, despite lawmakers refusing to increase stimulus payments to Americans and cut out foreign aid spending. This in turn averted a much dreaded partial government shutdown, but the president did note that he will send a formal rescission request to Congress for each item he deems unnecessary in the bill.
In the meantime, following the signing of the stimulus package, the price of gold inched higher on Monday, while the US dollar index slipped to a one-week low. Given that gold serves as a hedge against inflation during times of increased money supply in the economy, analysts are predicting that a bullish scenario for gold is on the horizon once again.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.