The Senate on Sunday failed to pass through a key procedural hurdle on a $1.6 trillion emergency rescue package. It does raise much pressure on the parties to make another attempt again to reach a deal.
As we mentioned in the last article, this is a critical package that the United States are reliant on. Both parties were struggling already in discussions that were taking over the course of Friday and Saturday.
Aside from the action taken from the U.S. central bank, FOMC, the economy needs further stimulus measures. These would be very targeted for businesses and consumers feeling the squeeze, during this current time.
In terms of the vote, 47-47, the measure fell well short, after Democrats denied Republicans the 60 votes needed to move forward. The noted sticking points remain around provisions for corporations getting federal assistance, including policy on stock buybacks and executive pay, as well as unemployment insurance and worker protections.
What does this mean for the market?
Selling pressure has already been observed in the U.S. stock indices, taking a beating at the open. Risk-off trading is being seen across the board, decent moves in USD and JPY, maintaining their respective safe-haven status.
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