Democrats take control of US Senate as windows pop up for additional fiscal aids

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Democrats take control of US Senate as windows pop up for additional fiscal aids

On Wednesday, Democrats had seized victories in twin US Senate races in Georgia, laying off a potential groundwork which could open up an opportunistic window for robust Government spending alongside additional fiscal stimulus as Tuesday’s landmark triumphs in twin Senate runoffs in Georgia had secured the first unified control for the Democrats in both chambers of US Congress since former US President Barack Obama had taken over the Oval Office back in the January of 2009.

Aside from that, as Georgia victories had stepped up hopes of an earlier-than-anticipated pandemic stimulus package, Democratic challenger Jon Ossoff added 50.3 per cent ballots into his tally and another Democratic contender Raphael Warnock had been just a notch shy of securing a triumph, data from Edison Research had revealed, while the New York Senator Charles Schumer who would likely to be the Senate Majority leader, was quoted saying late in the day that a top priority for the US Senate would be a raise of a one-off stimulus pay-check to $2,000 from an earlier $600 passed in the US Congress later last year.

Georgia results to pave way for quick monetary stimulus

In point of fact, although results in Georgia Senate runoffs had not been made official yet, a blowout upsurge in US bond yields late in the day had reflected that market participants had already begun to price in Democrats’ control on both Houses in the US Congress.

In tandem, several Biden aides alongside Congressional allies said after voting polls had hinted a likely Democrat-led US Senate that the odds-on Democratic victory in Senate runoffs in Georgia would enable the new administration to push forth for additional expenses in local Governments’ aid to in raise hospital capacity, a hike in pay offs for the front-line pandemic workers alongside a quickening of a mass-scale vaccination program.

Meanwhile, citing prospects of another trillion-dollar stimulus bill from a Biden Administration as early as by the first quarter of 2021, Jeffries analysts wrote in a client note, “We assume an additional $1 trillion of stimulus in the next few months...This will close the output gap roughly 4-6 quarters”.