Biden’s ‘rescue America’ plan is big. How its trillions could help both Wall Street and Main Street – By Joy Wiltermuth (Marketwatch) / January 16 2021
As Americans hunker down and wait to get vaccinated, the toll of the coronavirus pandemic keeps rising.
Its costs, both in lives and livelihood, prompted President-elect Joe Biden on Thursday to propose another $1.9 trillion “first step” spending package to help combat the carnage of the pandemic, even before he takes office next week.
But as Washington gears up to debate another big relief initiative, hand-wringing on Wall Street has already begun as investors worry the bull-market for stocks could be threatened by an economy that might overheat and cause borrowing costs to rise, while also potentially saddling the U.S. with unsustainable debts.
“It’s a tug of war,” said Bryce Doty, senior portfolio manager at Sit Investment Associates, in Minneapolis. “The current situation is horrible, but six months ahead, we hope a lot more people will be vaccinated.”
