Additional Relief Stimulus to Bridge Gap as Vaccine Distribution is Underway

December 22, 2020 | ,

While the recent approval and rollout of the Pfizer and Moderna vaccines would be expected to assist in the gradual economic recovery from the COVID pandemic, the Federal Reserve emphasized last week that approximately six months of both monetary and fiscal stimulus are needed to bridge the gap between now and adequate vaccine distribution to support herd immunity by 2H21. As such, Congress over the weekend finally reached an agreement on an approximate $900 billion fiscal stimulus package, and after passing through both houses Monday, President Trump is expected to sign it into law today.

The package includes aid for many Americans including $300 per week in federal unemployment benefit enhancements and $600 individual stimulus checks, as well as support for small businesses, healthcare, transit, schools, and vaccine rollout. In this paper, we will begin with an assessment of the stimulus packages to date, followed by highlights on key aid to individuals, businesses, and governments in this latest package. Next, we will discuss an interpretation and analysis of this relief deal in the context of key financial market and economic indicators. Finally, we will conclude with a look to next steps.

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The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.