The best Republicans and Democrats on Capitol Hill seemed to be approaching a compromise that would include both a new round of direct payments to Americans and additional unemployment benefits, according to others familiar with the nascent plan and described it on the condition of anonymity. A smaller bill could be passed now, and a bigger one could happen later: a subset of programs could be funded before Biden becomes president — for example, unemployment aid, an extension of the deportation ban, or even a second stimulus check, with the new Congress reviewing other programs after the inauguration. As current president, Trump is expected to sign any legislation passed by January 20 so it can take effect. We cannot know whether the second stimulus package will go that fast. There are a number of Republicans in the Senate who have expressed great concern about the amount of spending proposed. Having said that, we will expect that once an agreement has been reached, it will be by both chambers in three days maximum. Senate leaders were optimistic about the prospects for a deal Wednesday morning. Majority Leader Mitch McConnell, R-Ky., told the Senate that lawmakers have “made great progress” in closing a deal that could go through the House of Representatives and the Senate. Minority leader Chuck Schumer, N.Y., said they were on the brink of a deal. New York Gov. Andrew Cuomo may have thrown a key at the trial during his daily press conference, when he opposed the deal and said, “It would be really terrible for the state of New York.” The plan under consideration is less than half of the $2,200 billion economic law passed in March and is not close to what many economists had said to pull the economy out of a pandemic collapse. They have been warning for months of lasting economic damage and a deteriorating prospects for a rapid recovery and offer a bleak backdrop, with lawmakers acting with guilty voices. Before the report, which showed that retail sales fell by 1.1% in November, markets had been supported by signs of progress towards a stimulus package in Washington and by a purchasing managers` index report, which presented a favourable outlook for the European economy.

The manufacturing index reached 56.6 points after 55.3 points in November, and the composite output index reached 49.8 points compared to 45.3 the previous month. A vote on the $900 billion stimulus package could come in days, with legislation starting in the House of Representatives before going to the Senate and, if that happens in both chambers, signing President Donald Trump`s office. A smaller stimulus package has the potential to pass it by the end of 2020. If new aid to public and local authorities is not allowed, it could also come at a dangerous time for municipalities across the country. A person familiar with the negotiations said the agreement contained “other means of assistance” to states, cities, territories and tribes, but gave no details. Two other aid workers said lawmakers discussed approving $90 billion for the Federal Emergency Management Agency, which could then be distributed to states and cities. Thune said many GOP lawmakers would oppose the provision if “it is simply a way to hide money from national and local governments.” Although the agreement has not yet been finalized, Republicans and Democrats have indicated that they are ready to rally around the main elements, marking an extraordinary shift from a few weeks ago, when both sides issued an ultimatum and refused to stick to long-term positions.