Lawmakers in Washington are mulling options on an economic stimulus package in light of Monday’s global market crash tied to the coronavirus and oil prices.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, is looking into options for possible targeted tax relief as a response to the coronavirus, The Hill reported Monday.
“While we continue to assess the economic impacts, Chairman Grassley is exploring the possibility of targeted tax relief measures that could provide a timely and effective response to the coronavirus,” Grassley spokesman Michael Zona told The Hill. “Several options within the committee’s jurisdiction are being considered as we learn more about the effects on specific industries and the overall economy.”
Ed Mills, policy analyst for Raymond James, thinks “near-term attention needs to be focused on the Fed.”
Also, renewed attention needs to be focused on “other tools, including the restart of the asset purchase and credit/liquidity facilities to support non-government debt,” Mills writes in his Washington Policy briefing on Monday. “The market is clearly concerned about the potential economic impact of COVID-19.”
(Related: Six Thoughts on Collapse of the Oil Market)
As for the administration’s response, Mills noted interviews on Friday in which administration officials “signaled support for ‘targeted and timely’ fiscal stimulus, but downplayed any support for larger-scale efforts.”