The bailout is still difficult to produce! U.S. Congress to block the government shutdown through short-term spending bill and so Trump signed

The U.S. Congress passed a two-day spending plan on Friday (18), which has been sent to President Trump for signature, to address the immediate needs of the federal government shutdown before negotiations on the $900 billion bailout plan have reached consensus.

The federal government’s funding will be cut off once the deadline expires at midnight on Friday, but the House and Senate passed a stopgap bill to allow the government to operate until midnight on Sunday, during which time House and Senate leaders continued to negotiate a full-year spending bill and the much-anticipated epidemic relief plan.

Trump’s signing of the stopgap bill will temporarily resolve the shutdown crisis, but Congress is still facing a fairly tight timetable. If the relief plan is successfully negotiated, Congress will not vote until Sunday at the earliest, and it is likely to delay the vote until next week.

Congressional leaders have tied the bailout bill to a funding bill to support the federal government’s operations in fiscal year 2021. Over the past few days, congressional leaders have repeatedly said they are “close” to a $900 billion bailout deal, but by Friday they were still deadlocked on some details.

The biggest obstacle to negotiations so far is that the Republican version of the proposal limits the Federal Reserve’s (Fed) emergency borrowing capacity, a move that opposing Democrats say will limit Biden’s ability to revive the economy after he becomes president. Direct cash disbursement is also one of the controversies.

Fed’s emergency lending authority is the sticking point in negotiations

Congress passed the $2.2 trillion bailout bill in March, giving the Fed additional emergency lending powers to allow the central bank to assist small and medium-sized enterprises, state and local governments, the Fed has repeatedly expressed hope that these plans will be extended after the expiration of the end of the year, but now must return the unused funds in the plan to the Treasury.

U.S. Treasury Secretary Steven Mnuchin (Steven Mnuchin) has said that there is no longer a need to buy more corporate debt, and the municipal bond market is also operating smoothly, hoping to apply up to $800 billion of potential borrowing firepower to other more needed.