The Trump administration has let it be known, before the markets open, that it is seeking an enormous stimulus package of $850 billion to stop the economic free fall created by the coronavirus. The Washington Post writes:
“Treasury Secretary Steven Mnuchin will present details to Senate Republicans later Tuesday. The package would be mostly devoted to flooding the economy with cash, through a payroll tax cut or other mechanism, two of the officials said, with some $50 billion directed specifically to helping the airline industry. The officials spoke on condition of anonymity to discuss internal deliberations.“
Politico’s Playbook reports:
“A big chunk of this $850 billion is likely to be the payroll tax cut, which faces uncertain prospects in Congress.
“We tend to be skeptical, because these things usually take time on Capitol Hill. Unless they don’t.
“The $850 billion figure may be calming to markets. The FT says European markets were up as much as 3% , but they slipped just before 6 a.m. Dow Futures seesawed this morning — they were up, but then nosedived and were in the red as we published.“
