TOPLINEIn an interview with CNBC, Greg Jensen, the co-CIO of hedge fund giant Bridgewater Associates, estimated that the U.S. economy needs another stimulus bill worth between $1.3 trillion and $1.7 trillion to sustain its recovery. One of the biggest points of contention over the next stimulus bill is the price tag: Democrats passed their $3 trillion opening offer in May; the GOP’s July proposal was worth about $1 trillion. Democrats have offered to meet White House negotiators in the middle at $2.2 trillion, but the White House has rejected that offer. On Friday, White House chief of staff Mark Meadows said that President Trump would be willing to sign a new bill with a $1.3 trillion price tag—that’s slightly higher than the GOP’s original $1 trillion offer, but much lower than the Democrats’ $2.2 trillion red line. Crucial quoteWhen the federal government ends its fiscal stimulus measures, “it’s a massive tightening to the economy and an unsustainable one,” Jensen told CNBC.

Source: Forbes September 01, 2020 20:15 UTC