It’s unlikely that we’d see a second stimulus bill, let alone another stimulus check on the same level or scale of the CARES Act. A Republican-led Senate doesn’t seem keen to approve measures pushed by the Democrat-controlled House to do so. Part of the reason why is that strong showings in economic numbers from May hasn’t helped the argument to do so. As optimism grows on the economy grows, Republican can argue – another check or extension of benefits isn’t needed.
Jobs Coming Back Faster Than Expected
Stocks took off last week when it was announced that the U.S. added 2.5 million jobs in May. This was a surprise after economists predicted job losses of 8 million, while unemployment rates were at 13.3%. That’s a 1.4% improvement from April. Again, this was below what economists had expected. Visa(NYSE:V) reported that U.S. payments declined at a slower rate in May than in April. This gives credence to the idea that consumer spending began to rise last month.
The unexpected uptick in consumer spending could be used by the Republican Senate to dismiss further stimulus checks as it the economy shows strengthening. Regardless, both sides return to work Sept. 8. Add to that an election coming in November, passing or not passing another round of stimulus checks will be a popular topic.
The most productive thing you can do now, over the upcoming summer months, is to get your bank account information to the IRS. That way, if a stimulus check is approved, it can be direct deposited to your account.