With no signs of negotiations yet, hopes are dimming of another coronavirus stimulus package. However, if some miracle happens and negotiators finalize a coronavirus relief package by this week, it is still possible that some people could get the checks this month.
Inflation has been a big focus of Wall Street in recent months, and it won't go away any time soon. But where do we stand with inflation? Has it peaked, or will it continue higher? Q2 2021 hedge fund letters, conferences and more Nic Johnson of PIMCO, Catherine LeGraw of GMO, and Evan Rudy of Read More
Will checks be sent this month?
If there is a deal this week, i.e. by the 14th (Friday), the IRS would have about two weeks to send out at least some stimulus checks. This two week timeline is considering the House and Senate vote, as well as the President’s approval, taking a maximum of two to three days.
Those aware of the IRS functioning believe this may be just enough time for the IRS to send some checks this month. According to union representatives for the IRS, the agency is now in a better position to send the checks than it was in April.
On Tuesday, Chad Hooper, national President of the Professional Managers Association, told CNBC that Friday is the deadline for sending out checks this month.
“The infrastructure is already in place to administer such a payment,” Hooper said.
Whether or not negotiators could finalize a coronavirus stimulus package by this week is a big question. Speaking to CNBC earlier this week, Treasury Secretary Steve Mnuchin said, "if we can get a fair deal, we're willing to do it this week.”
Similarly, House Speaker Nancy Pelosi told reporters on Wednesday that she doesn’t want the negotiations to continue until the end of September.
"I hope not. People will die," she said.
Though both sides – Democrats and Republicans – agree on the need of a relief package, they haven’t yet shown any intent to do it by this week. Both sides agree on the amount and size of the stimulus checks, but have wide differences over many other provisions, especially the unemployment benefits and aid to states and local governments.
Republicans’ HEALS Act reduces unemployment benefits from $600 to $200 for the first two months. After that, the plan proposes 70% wage replacement. Democrats, on the other hand, want to keep $600 as a benefit until 2021.
"We are looking at middle class income tax cuts and capital gains tax cuts to spur investment and jobs and liquidity," Larry Kudlow, White House economic adviser, told reporters yesterday while talking about the negotiations. “The president has never lost those thoughts. He is a tax cutter in direct contrast to the Biden team, which are tax raisers,” he said.
Each side is blaming the other for the impasse over the coronavirus relief package. "Democrats seem to be done being reasonable," Senate Majority Leader Mitch McConnell said Wednesday.
Pelosi, on the other hand, said Republicans are "disorganized, in disarray, and do not believe in governance or science."