While Congress has seemingly shifted its focus from an additional stimulus package to further assist hard-hit industries, the topic has again been discussed in recent days. And while Democrats are continuing to push for additional stimulus checks and bailouts, there’s some economic experts who think that an additional measures may not even be necessary at this time.
Take it from Wall Street strategist Ed Yardeni, who believes that the U.S. economy will be able to improve enough this fall and into the winter that an additional package may not be necessary. His reasoning? He believes there’s still enough funding from the CARES Act, which was passed last March in the early days of the pandemic, to keep the U.S. economy on the upswing.
Yardeni claims that the funding is still helping the U.S. economy, and if jobs continue to be added this fall and into the early days of winter, it will continue to boost the struggling economy so much that an additional stimulus package may not be essential.
Now, all of this is a big “if.” While job reports have been positive over the last several months, the economy still has a long way to go if it wants to replace all of the jobs that were lost when the pandemic really hit American shores. And with COVID-19 still a very real threat, it’s likely going to take a while for full recovery to take place. Then, there’s the fact that job losses are still looming, especially in hard-hit industries like air travel, entertainment and hospitality.
Still, Yardeni believes that if the economy continues to improve, conditions will return closer and closer to normal.
Even with Yardeni’s take, other experts still believe that a targeted stimulus package would represent a huge help to the economy. One of these individuals is White House economic advisor Larry Kudlow, who believes that the U.S. is in the comeback stages of this current recession.
So where do things stand now with talks on another stimulus package? There were signs of optimism last week as Democrats and Republicans signaled that they were closer to an agreement. But with a looming battle over replacing or waiting to replace the now-vacant Supreme Court justice seat, it remains unlikely that anything will be passed prior to the November 3 General Election. And if that’s the case, Americans should certainly hope that Yardeni is correct and the economy will continue to expand this fall and into the winter months.
Like Kudlow, Treasury Secretary Steve Mnuchin believes that a targeted package is still necessary, but signs point to a deepening rift between the two political parties over a separate issue that could be a major prohibiting factor from getting it done in the near-term.