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GOP Taps Brakes on New Stimulus After Rebound in Jobs Market

  • White House backs another $1 tln package; hawks unconvinced
  • Senate holds hearing on jobless benefit due to expire in July
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June 6: Fundamental Constraints on the Economy Haven't Changed: Summers

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The surprise rebound on U.S. job markets is leading some Republicans to question the need for more stimulus, as Congress debates whether to renew the extra benefits it approved for unemployed Americans during the coronavirus crisis.

The Senate Finance Committee held a hearing Tuesday to assess how the payments of $600 a week, due to expire on July 31, have helped soften the blow from the pandemic. Republicans have argued that the need to juice the economy is receding, after 2.5 million jobs were created in May and the unemployment rate declined when it was expected to jump.

That data “underscores why Congress should take a thoughtful approach and not rush to pass expensive legislation paid for with more debt,” said Michael Zona, spokesman for committee chairman Chuck Grassley.

That doesn’t mean there’s no more stimulus in the pipeline. President Donald Trump said last week he’ll ask Congress to pass more measures, including a payroll tax cut. The White House is looking to spend as much as $1 trillion, a figure that is said to have backing from Senate Majority Leader Mitch McConnell.