Biden team seeks quick stimulus Bill in face of 'double-dip' recession

President-elect Joe Biden and House Speaker Nancy Pelosi at a meeting last Friday. Many of Mr Biden's advisers are convinced that deteriorating economic conditions from the Covid-19 outbreak and the looming threat of millions of Americans losing thei
President-elect Joe Biden and House Speaker Nancy Pelosi at a meeting last Friday. Many of Mr Biden's advisers are convinced that deteriorating economic conditions from the Covid-19 outbreak and the looming threat of millions of Americans losing their jobless benefits in December amid a wave of evictions and foreclosures require more urgent action before the end of the year. PHOTO: NYTIMES

WASHINGTON • Advisers to President-elect Joe Biden are planning for the increasing likelihood that the United States economy is headed for a "double-dip" recession early next year.

They are pushing for Democratic leaders in Congress to reach a quick stimulus deal with Senate Republicans, even if it falls short of the larger package Democrats have been seeking, people familiar with the discussions say.

Until now, Mr Biden, House Speaker Nancy Pelosi and Senator Chuck Schumer, the Senate Democratic leader, have insisted that Republicans agree to a spending Bill of US$2 trillion (S$2.7 trillion) or more, while Senate majority leader Mitch McConnell wants a much smaller package.

The resulting impasse has threatened to delay additional economic aid until after Mr Biden's inauguration on Jan 20.

Many of the President-elect's advisers have become convinced that deteriorating economic conditions from the renewed surge in Covid-19 infections and the looming threat of millions of Americans losing their jobless benefits in December amid a wave of evictions and foreclosures require more urgent action before the end of the year.

That could mean moving at least part of the way towards Mr McConnell's offer of a US$500 billion package. But top Democrats are publicly adamant that Republicans must move closer to their opening offer of US$2.4 trillion.

Mr Biden, Ms Pelosi and Mr Schumer have given no public indication of how much they are willing to scale back their ambitions in order to reach a deal with Mr McConnell, arguing that the Republican leader has not been willing to compromise.

"The Covid-19 pandemic and economic recession will not end without our help," Ms Pelosi and Mr Schumer wrote in a letter this month, asking Mr McConnell to resume negotiations.

"It is essential that this Bill have sufficient funding and delivers meaningful relief to the many Americans who are suffering."

Mr Biden's team is also considering a range of other policy options for fighting a renewed downturn and the prospect of rising unemployment when he takes office.

Some of them, like a sweeping spending Bill that includes all or large parts of his campaign proposals for infrastructure, could depend on Democrats winning Senate control in two special elections in Georgia in January.

But the most important measure could be quick congressional approval of a stimulus Bill.

"There needs to be emergency assistance and aid during the lame-duck session to help families, to help small business," Ms Jen Psaki, an aide in Mr Biden's transition team, said last Friday. "There's no more room for delay."

NYTIMES

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A version of this article appeared in the print edition of The Straits Times on November 24, 2020, with the headline Biden team seeks quick stimulus Bill in face of 'double-dip' recession. Subscribe