The Senate will likely take up the issue of a further round of economic stimulus in 2 weeks on July 20. A key question is will more stimulus checks be part of it? It seems increasingly likely that stimulus checks may form part of the package after weeks of uncertainty. However, more targeting of those checks also appears likely. $40,000 may be the income limit for another round of checks, down substantially from the last round.
Case For Stimulus Is Clear
There has been little debate that further stimulus is needed for the U.S. economy. Last month an open letter from over 150 economists called for more efforts for stimulate growth. Noting that the Congressional Budget Office (CBO) forecast a $16 trillion output gap and that, “Almost 40 percent of those in households making less than $40,000 a year had lost a job in March.” In fact, there appears to be no major push back on the idea that more stimulus is needed. The debate centers on the form and size of stimulus.