If you’ve watched the stock market mount its breathtaking recovery over the past few months even as the country languished in a pandemic and recession, it might be easy to think, Nothing can stop this rally. Well, it looks like Congress could.
The $2.2 trillion fiscal stimulus package passed by Congress in March, which helped nourish a 51% trough-to-peak rebound in the S&P 500 and prevented a deeper economic crisis, has largely dried up. And economists and analysts tell Fortune it’s critical to pass more stimulus (and soon); otherwise another stock market correction and economic contraction could be looming.
Negotiations for another round of massive stimulus are stuck in a political stalemate: Democratic leaders haven’t come down from their ask of $3.4 trillion, and the White House won’t budge on its offer of around $1 trillion. The parties are in disagreement on items including a steep increase … Read More