- US House of Representatives Approves $3.5 Trillion Budget Bill
- The People’s Bank of China Gave a Short-Term net 40 billion Yuan to the Market
- Activity in the USA is Increasing Compared to Pre-Covid-19
US House of Representatives Approves $3.5 Trillion Budget Bill
In the US House of Representatives, democrats approved a $3.5 trillion budget framework to advance the party’s progressive wing’s plans to expand childcare and other social programs. They also agreed to vote by September 27 on the $1 trillion infrastructure bill, which has passed the Senate and is a priority for Democrats.
President Biden’s $3.5 trillion outreach infrastructure plan has led to a split between the party’s progressive wing and the centrist front.
Speaker of the House of Representatives Nancy Pelosi also said they will work with the Senate to determine the details of the larger $3.5 trillion budget.
Democrats should make no mistake in the process of approving two major spending initiatives in the House of Representatives and the Senate, where the Democratic Party has a narrow majority.
“It is always exciting to pass an infrastructure law, as what it means for business and commerce in our country is always exciting,” Pelosi said, adding that the bill now more than ever should be part of protecting the environment.
US President Biden, at the press conference, expressed his satisfaction with the decision of the House of Representatives and expressed that it is one step closer to investing in the American people.
Speaker of the House of Representatives Nancy Pelosi had hoped for quick approval of the $3.5 trillion draft budget, which includes details such as childcare, education, and levying additional taxes on the wealthy and corporations. However, a group of party leaders led by Josh Gottheimer from the centrist wing of the Democratic Party refused to comply with this plan, considering that the House of Representatives must first pass Biden’s $1 trillion infrastructure plan. The infrastructure plan has received the approval of both Democrats and Republicans in the Senate.
Liberals such as New York state representative Alexandria Ocasio-Cortez say they will not support the 1 trillion infrastructure package without the 3.5 trillion spending package, fearing that they will lose their trump card.
The People’s Bank of China Gave a Short-Term net 40 billion Yuan to the Market
According to China Daily, which cites sources familiar with the topic, the People’s Bank of China (PBOC) is likely to expand further funding measures from the banking sector to the real economy and small enterprises in the months ahead.
The central bank’s most recent policy signal may point to a targeted credit easing, but the overall monetary policy, which is conservative and stable, is unlikely to turn to a large stimulus.
They expected that the PBOC would maintain a stable and abundant level of liquidity, while bank loan issuance would pick up in the second half of the year.
Meanwhile, the Chinese central bank injected CNY50 billion via seven-day Reverse Repos while Reverse Repos with CNY10 billion mature this Wednesday, making a net CNY40 billion net boost via Open Market Operations.
Activity in the USA is Increasing Compared to pre-Covid-19
According to reports from Google, there are signs that indicate the tide might be turning, albeit slowly. Cases are still increasing but at a reduced rate. With U.S. national rate still hovering at 150,000 per day, this may not be much consolation, but it does give reason to believe that business and consumer activity can keep the economy on track to pre-pandemic levels.
“The percent increases in cases and hospitalizations are declining each week, indicating progression towards a nationwide peak,” Chris Meekins, health policy research analyst at Raymond James, said
Meanwhile, economic recovery metrics continue to improve, although at a slower pace, as the increase of delta has sparked concerns about what lies next.
The unequal nature of the rebound, as well as the sluggish but steady route higher, are highlighted by Google Mobility data. Workplace mobility was still behind the times, down 33% from pre-pandemic levels, and transportation terminals saw a 23% drop in traffic. Retail and recreation are likewise slightly down, although supermarket and pharmacy activity has returned to a slightly higher level according to Google.
Nonetheless, policymakers and economists are still concerned that delta may have a greater influence than previously assumed. Both the economic and viral data point to a shaky recovery, but one that is still moving upward.