President Donald Trump’s administration is considering a second wave of economic stimulus efforts — the so-called “Trump Checks” that delivered $1,200 in the pockets in every American taxpayer.
The sting of the coronavirus shutdown continues to drag down the U.S. economy, and the White House is weighing a second stimulus.
Deadliest Drug Ever (are you taking it?) [Sponsored]
“It’s something that we’re very seriously considering,” Treasury Secretary Steven Mnuchin told The Wall Street Journal and other reporters Thursday.
Mnuchin said he had discussed with President Donald Trump the idea of second stimulus package, though no final decision had been made yet on whether to push for them among Republican leaders.
Last week approximately 1.5 million more laid-off workers applied for U.S. unemployment benefits, evidence that many Americans are still losing their jobs even as the economy appears to be slowly recovering with more businesses partially reopening.
The latest figure from the Labor Department marked the 10th straight weekly decline in applications for jobless aid since they peaked in mid-March when the coronavirus hit hard. Still, the pace of layoffs remains historically high.
The total number of people who are receiving unemployment aid fell slightly, a sign that some people who were laid off when restaurants, retail chains, and small businesses suddenly shut down have been recalled to work.
Bad News for Bottled Water [Sponsored]
The figures are “consistent with a labor market that has begun what will be a slow and difficult healing process,” said Nancy Vanden Houten, an economist at Oxford Economics. “Still, initial jobless claims remain at levels that at the start of the year might have seemed unthinkable.”
Last week’s jobs report showed that employers added 2.5 million jobs in May, an unexpected increase that suggested that the job market has bottomed out.
But the recovery has begun slowly. Though the unemployment rate unexpectedly declined from 14.7%, it is still a high 13.3%. And even with the May hiring gain, just one in nine jobs that were lost in March and April have returned. Nearly 21 million people are officially classified as unemployed.
So when should Americans expect relief? Not for a few months at least, experts say.
If passed, the second round of the HEROs Act would probably again distribute $1,200 to each American tax payer via paper check or direct deposit.
Senate Leader Mitch McConnell said the Senate would need approximately a month to negotiate a similar deal, so Americans shouldn’t expect a second payment until late July at the very earliest.
“I definitely think we are going to need another bipartisan legislation to put more money into the economy,” Mnuchin told the U.S. Senate Committee on Small Business earlier this week. “We don’t want to rush into that because we want to be both careful at this point in seeing how the money is in the economy.”
The Associated Press contributed to this article