This morning, word’s out on the size of the stimulus package a group of bipartisan US senators are working towards. White House Economic Advisor Larry Kudlow told reporters they are making progress towards a package in excess of 10% of GDP, which would mean a value north of $2 trillion dollars.
“The package is coming in at about 10 percent of GDP”
White House Economic Advisor Larry Kudlow
The lawmakers will be working throughout the weekend to meet the Trump administration’s Monday deadline of an agreement.
This would entail the third coronavirus relief package, with the first being an $8.3 billion package to provide federal aid to government health officials and vaccine research. The second being the announcement this week for a $100 billion aid package for free testing and emergency paid leave for workers.
The announcement comes shortly after Goldman Sachs issued a report estimating a 24% decline in Q2 GDP.
Over the last few days social distancing measures have shut down normal life in much of the US. News reports point to a sudden surge in layoffs and a collapse in spending, both of which appear to be historic in size and speed. We are therefore making further large downward revisions to our economic forecast. – Goldman Sachs
An overall breakdown on where they see various segments of the economy can be found here:
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