Stimulus Deal on 5 Yard Line: Stocks Soar But Questions Remain
The Wall Street Journal reports Negotiators Nearing Accord on U.S. Stimulus Package to Combat Coronavirus but specific details are still up in the air.
Top lawmakers and the Trump administration closed in on completing a colossal stimulus package, worth at least $1.6 trillion, designed to shield the U.S. economy from the most drastic consequences of the coronavirus pandemic. “I believe we’re on the 5-yard line,” said Senate Majority Leader Mitch McConnell (R., Ky.) on the Senate floor. “I hope today is the day this body will get it done.”
Treasury Secretary Steven Mnuchin, who has led the negotiations for Republicans, said on Tuesday morning that he expected a deal. He and Mr. Schumer completed a round of late-night talks Monday predicting they could soon finalize an agreement, which Mr. Schumer said could run to $2 trillion.
The two sides were approaching an agreement on one of the primary remaining sticking points: oversight on $500 billion that Republicans had proposed to allocate to aid distressed businesses. Democrats had sought controls on those funds, which include loans made directly by the Treasury Department and a backstop for losses in Federal Reserve lending facilities.
Stop the Nonsense
I agree with Trump on the nonsense.
So how many pages will there be to this bill, and what's on the pages?
Meanwhile, Wall Street loves the bailout, no matter what it is. THe DOW is up about 8% , with the Nasdaq up 5%, and the S&P 6.5%.
Gold is up another $87 to $1654.
Is Everybody Happy?
Not quite. especially the 5-year note. The 5-year yield is up 11 basis points to 0.51%. The 10-year note is is at 0.82% and the 30-year bond yield is 1.39% up 4 basis points.
Mike "Mish" Shedlock