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Excited About Another Stimulus Package? So Are 150 CEO's and Executives

Sean McDermott

Posted on February 28, 2021 03:37

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As Congress votes on the Biden Administration's $1.9 trillion stimulus package, 150 CEO's and elite business executives have written a letter expressing their support of the measure to stimulate the U.S. economy.

Another round of relief is on its way for Americans as so far the House of Representatives passed a sweeping, $1.9 trillion, Covid-19 relief package this morning. The bill passed 219-212 with zero Republican support and two Democrats defecting from party lines. The bill, which still has to pass the Senate before going to President Biden's desk for approval, includes another round of relief checks. These checks are to be worth $1,400 for every citizen making less than $75,000 a year, an additional $1,400 for each dependent, and for jointly-filing married couples, the full check amount will be dispersed to those making up to $150,000 a year (check sizes would decrease for individuals making a maximum of $100,000/couples making a maximum $200,000.) 

As this relief package nears total fruition and distributes financial assistance to millions of Americans nationwide, there has been a push from 150 CEOs and/or top executives of major companies. The support for the bill was addressed in a letter, and those adding their names to the letter were Google CEO, Sundar Pichai; Goldman Sachs Chairman and CEO, David Soloman; AT&T CEO John Stankey; and Blackstone CEO, Stephen Schwarzman to name a few. 

Those who signed the bill included some who were major supporters of Biden's predecessor, Donald Trump. Schwarzman of Blackstone is one, but another supporter of his listed on this urgent message was New York real estate mogul, Richard LeFrank. 

The entire Republican conglomerate does not support this bill for reasons of financial and fiscal responsibility; claiming the bill is far more expansive and expensive than is needed for the moment. If so, then why is such a large conglomerate of industry icons adding their names to such a letter? At surface value, the contents of the letter support items pertinent to funds to help with the logistical distribution of vaccinations, opening more schools up for children, and many other initiatives to help communities hurt the most by the virus's devastation. 

Beneath the surface, companies are watching this bill's passing as it could send stocks up with the bill's passing. Financial analysts are predicting this stimulus could boost the stock market, fuel economic growth, and raise interest rates. Just days before Biden's inauguration, Wells Fargo forecasted increases in stocks, interest rates, and overall growth. "The huge rally we had suggests the market is looking past the virus," said Ed Keon, chief investment strategist at QMA, about market gains amidst talks of another relief package. "If you get a big stimulus package on top of the last stimulus package we got, that rebound could really be much stronger than expected."

The relief package has challenges and some variants for success. For example, if vaccinations aren't distributed fast enough, we could see a spike in inflation. Figuratively speaking, industry executives are holding their cards close to their chest, but this letter of support says they will bet to win with this latest relief package.

Sean McDermott

Posted on February 28, 2021 03:37

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President-elect Joe Biden's COVID relief proposal includes investing $20 billion in a national vaccination program and $1,400...

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