Yesterday, the Senate passed HR 6201, a House-passed coronavirus (COVID-19) bill focused on establishing funding for Emergency Leave, Sick Leave, and Medical Leave for employers with less than 500 employees. This piece of legislation is referred to as Phase 2 (Phase 1 was an appropriation bill earlier in March). The markets eagerly await “Phase 3” which is being negotiated in the Senate now.
Most estimates anticipate the Phase 3 stimulus legislation will exceed $1 trillion and will include direct industry targeted support for distressed sectors of the economy and the creation of a small business interruption loan program.
Above and beyond Phase 3, the Treasury Department has proposed making direct payments to Americans in early April and there is much discussion of a payroll tax holiday as well. Despite the slow progress in containing COVID-19, Congress has been acting rapidly to reduce the depth and duration of pain the recession will likely bring.
Our Investment Committee continues to monitor closely both the economic impact of the virus and the likely related impact of stimulus bills. Please stay tuned as the environment is highly fluid.
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