All eyes are now on Donald Trump and the Senate as to what the coronavirus stimulus package 4 would look like. It is very likely that there would be another stimulus round, but whether or not it would include stimulus checks is the question that most Americans want an answer to. Senate Republicans are not very excited about stimulus checks, but recent remarks from Trump do give some hope of direct payments being included in the next stimulus package.
Phase 4 to be "dramatic"
Speaking to Nexstar Broadcasting on Wednesday, Trump indicated the possibility of coronavirus stimulus package 4 this summer. Trump told that his administration is considering “dramatic” Phase 4 stimulus payments.
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“I think we’re working on something that’s going be very dramatic, very good,” Trump said.
Trump did not share specific details of the stimulus package. However, he did suggest that his proposal for the next stimulus would focus on business owners and on creating more jobs in the manufacturing sector.
Moreover, he also said that the White House is looking at doing “something else.” Though Trump said nothing of stimulus checks, many believe this "something else" could be related to direct payments.
“Phase 1, 2 and 3 have been fantastic for people generally… small business owners, also. But we’re looking at doing something else,” Trump said.
Talking of the economy, Trump said it is “really starting to roar” while referring to the last month’s job and retail numbers.
“Up 17.7 percent… they were expecting 6 percent, 5 percent, maybe 7 percent, then we were 17.7. So the economy is roaring back.”
Trump also talked about if he is concerned about the second wave of COVID-19. He said that he is not concerned at all. “The plague as I call it, the virus, is abating. We know how to handle it,” Trump said, adding the vaccine could arrive very soon.
“I think we’re very close to a vaccine. The vaccine is going to happen,” he said.
Though Trump did not reveal specific details of what coronavirus stimulus phase 4 might include, over the past few weeks, we've been getting hints of what Trump would want to see in the next stimulus round.
A recent Bloomberg report suggested that the Trump administration is considering a nearly $1 trillion infrastructure program. Trump recently has also talked about boosting the tourism industry through a domestic travel credit to those opting for a vacation in the states.
Though Trump has not talked about how much this credit would be, the U.S. tourism industry lobbyists are favoring up to $4,000 in tax breaks. Trump’s “Explore America” proposal could partially cover the cost of travel and accommodation. Japan is considering a similar proposal to encourage tourists.
Trump has also supported creating manufacturing jobs to get the economy back on track. Peter Navarro, a White House trade adviser, recently told Fox Business that manufacturing jobs will play a crucial role in reviving the U.S. economy.
Another thing that we might see in the next stimulus package is "back to work" cash bonuses. Last month, Larry Kudlow, senior White House economic advisor, proposed "back to work" cash bonuses for unemployed American. It is largely believed that the next stimulus package would replace the $600 federal benefits with “back to work" bonuses.
Will there be more stimulus checks?
Talking of whether or not coronavirus stimulus package 4 would include stimulus checks, there is a lot of uncertainty. However, Trump’s recent remark of "something else" does raise hope of direct payments.
Last week, Treasury Secretary Steven Mnuchin also suggested that the Trump administration is evaluating sending another round of stimulus checks.
“I think we’re going to seriously look at whether we want to do more direct money to stimulate the economy,” Mnuchin said during the Senate Committee on Small Business and Entrepreneurship.
Democrats, on the other hand, are already in favor of the stimulus checks. The $3 trillion HEROES Act proposes $1,200 in stimulus checks, along with $1,200 each for up to three dependents.
Democratic presidential candidate Joe Biden also recently laid out his vision for the US economy a few days back. Biden’s proposal includes expanding coronavirus testing and protective equipment for those returning to work. Biden also proposes paid sick leave, and small-business grants.
As to when we could see the coronavirus stimulus phase 4, it is largely believed that there won’t be anything at least until the end of July. Senator Roy Blunt earlier this month, said that Republicans are in no hurry on the next stimulus package, but believe it should take place before the August break.
Separately, Larry Kudlow, US National Economic Council Director, suggested that the next stimulus would not be considered before the weekend of July 4.
If what these officials are saying is true, then we could have the next stimulus package by the beginning of August. And, if the package contains stimulus checks, then you can expect the initial deposits by August 22 or 23.