US approves $900 billion stimulus package

After dragging its feet in negotiations to shield a fiscal stimulus package by value of approximately 900 billion dollarsThe U.S. Senate succeeded in overcoming the hurdles that will allow it to vote on an aid plan for the U.S. economy in its recovery plan.

The delay in giving the green light to the plan came in the face of a proposal by Republican Senator Pat Toomey. The latter included a controversial clause that would prevent the Federal Reserve from restarting a good part of the emergency loan programs that will expire at the end of this year. This was at the express request of the Treasury Department, which endorsed them financially.

However, senators reached an agreement on the Fed's emergency lending powers late Saturday. For this reason, the last major hurdle to passing a second batch of stimulus was overcome.

Senate Minority Leader Chuck Schumer, a Democrat, and Toomey finalized the details of a compromise last night, the Wall Street Journal reported. Under the agreement, the central bank will retain its ability to set up emergency lending programs without congressional approval. But it will face a tighter restriction, as the central bank will not be able to replicate programs identical to those it activated in March at the beginning of the pandemic without congressional approval.

To be taken into account

Legislators plan to attach the stimulus to the bill for 1.4 trillion dollars to finance the government. The measure was to have been voted on Friday to avoid the third partial shutdown of federal operations under the Trump Administration.