Weekly Investment Update

On Sunday, Congressional leaders in the House and Senate announced that they had finally come to agreement on a long-awaited additional stimulus bill to mitigate the economic impact of the COVID-19 pandemic.  As of this writing, some of the final details of the bill remain uncertain, and the official vote is expected to happen on Monday. The bill will then be sent for President Trump’s signature. 

It has been reported that the bill will total approximately $900 billion in aid, and key provisions of the bill include:

  • $600 in direct payments for each adult and their dependents (potentially subject to income limits)
  • $300 per week for enhanced unemployment benefits
  • $284 billion in addition funds toward the Paycheck Protection Program
  • $15 billion in support of live venues, independent movie theaters and cultural institutions
  • $25 billion in rental assistance and an extension of the eviction moratorium
  • $82 billion for education providers such as schools and colleges
  • $10 billion for childcare assistance
  • $13 billion in increased Supplemental Nutrition Assistance Program and child nutrition benefits
  • $7 billion to bolster broadband access

The bill is also expected to include a significant amount of funds directly related to vaccine distribution, testing, and contract tracing, as well as tax credits to help employers offer paid sick leave[1].  The new bill is roughly half the size of the $2 trillion CARES Act signed in March, though still one of the largest in US history.  The $600 in direct payments and $300 in enhanced unemployment benefits are half of what was originally included in the CARES Act. 

 

Key Economic Releases This Week

Asset Class Returns

Prices & Interest Rates

[1] https://www.cnn.com/2020/12/20/politics/second-covid-stimulus-package-details/index.html

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