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Us economy rebounds another epidemic prevention assistance program "on the way"! Market worries are expected to ease vigilance against gold price shocks and build a peak.
Jul 7,2020 15:11CST
Source:Huitong network
The content below was translated by Tencent automatically for reference.

SMM / PRNewswire-Asianet /-U.S. Senate Majority Leader Mitch McConnell said at a news conference that Congress will pass the final epidemic assistance plan later this month. He also called on the public to wear masks to control the spread of the epidemic.


McConnell said Congress will pass the final epidemic prevention aid plan later in July.

In McConnell's view, the epidemic is not over, he believes that the U. S. economy needs another boost. Mr McConnell said he was "very sure" that a bill would be reached in the coming weeks. After consulting US government officials, his office will draft the bill and then negotiate with Democrats who support the $3.5 trillion package approved by the House of Representatives in May. Senate Republicans have rejected the plan and are discussing a spending package totaling $1 trillion.

McConnell said that no matter what the final figure is, it will be more difficult to pass the $2.2 trillion health care bill with the unanimous approval of the Senate. "the atmosphere has become a little more politicized than in March," he said. "

McConnell reiterated his claim that the bill must include the protection of reopened businesses, schools and other institutions. His focus is on helping schools resume classes, promoting employment and health care.

McConnell said the bill could include additional subsidies for individuals. He added that hotel industry employees were the most affected by the epidemic, earning about $40,000 a year or less.

He said lawmakers would consider increasing state and local aid, but warned that soaring federal debt was one of the reasons why the next bill must be the last.

McConnell encouraged people to wear masks, and President Trump became a little more positive.

When it comes to masks and the epidemic, McConnell's tone is very different from that of President Trump. Trump avoids wearing masks in public and has repeatedly tried to minimize the epidemic.

McConnell said: "the most important thing is not complicated, that is to wear a mask." As long as we do this, each of us can not only help ourselves, but also protect our friends, neighbors and those around us. "

Although McConnell does not support the demand that people across the country wear masks, he believes that everyone involved in public life should wear masks. He urged people to wear masks actively and follow this example.

McConnell blamed the surge in cases on people not paying enough attention to the epidemic. Many people believe that when the United States reopens its economy, it should soon be able to get back to a good life, but this has virtually accelerated the spread of the epidemic.

At a news conference on July 6, White House Press Secretary McKinney said President Trump made it clear last week that if he was in an environment that could not be tested every day and that people were close to each other and could not maintain a certain social distance, he would wear a mask.

Trump plans to hold an outdoor fair in New Hampshire on Saturday. He made it clear that he should not only distribute masks, but also recommend people to wear them actively.

The improvement in US data suggests that the economy is recovering to some extent.

Data released on 6 July showed that the non-manufacturing PMI of ISM in the United States in June was 57.1, the highest since February, and higher than the previous value of 45.4 and the expected value of 50, indicating that the US economy has rebounded sharply from the serious impact of the epidemic and has successfully recovered some vitality.

A reading above 50 indicates economic growth, thus suggesting renewed expansion in the US service sector, adding to investor optimism at the start of the week.

After the release of the data, the US stock market expanded its gains at one point, and the dollar gained a foothold together.

Quinlan (Tim Quinlan), senior economist at Wells Fargo Securities, said that the US service sector is returning to normal in a remarkable way, and the recovery is in the form of a "V". Employers need to see a more stable economic restart before there will be a substantial increase in hiring. He also stressed that there were signs that the worst impact of the epidemic and related blockades was receding.

Huitong warned that at a time when the US economy is showing signs of improvement, if the US Congress, as McConnell said, will pass the last epidemic relief plan at the end of July, this will undoubtedly help boost the US economy and allay market worries. Gold prices may remain under pressure below the 1800 mark, and the short-term may even face the risk of shock peaking.

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