After the Trump administration made compromises on coronavirus testing and tracing ahead of a Tuesday evening deadline to reach an agreement, House Speaker Nancy Pelosi said she was hopeful about a coronavirus pandemic relief offer.
WhyÂ itÂ mattersÂ toÂ theÂ worldÂ ofÂ cryptography:
- Since in recent months, the price of bitcoin and equity have been closely correlated. As the stimulus package will be a boost to the
financial markets, the price of cryptocurrencies could also be excellent.
- Crypto investors have been betting throughout the year that the influx of government and central bank spending to tackle the economic downturn triggered by the pandemic would inevitably lead to inflation, which would also help cryptocurrencies.
- All this stimulus brings into doubt the independence of the United States. The Federal Reserve, which in the short term has effectively been printing cash with abandon to escape economic disaster, leaves itself open to criticism of the mountain of debt generated by these spending spurs.
Meanwhile, in a Bloomberg Television interview, Pelosi (D-Calif.) said that progress was being made on “primary provisions” and that legislative language is being drafted.
Senate Majority Leader Mitch McConnell (R-Ky.) said that if Pelosi and Treasury Secretary Steven Mnuchin reach an agreement and the resulting bill passes the House, the Senate will take up the stimulus package, Bloomberg reported.
McConnell did not say whether he was going to back the bill. Some GOP senators are sponsoring a much smaller package. Although the House Democrats are holding out for $2.2 trillion, the White House has proposed a $1.8 trillion stimulus package.