FHN Financial AM Economic Comments: Friday, May 15, 2020

​The House plans to vote on the Heroes Act today. This latest stimulus bill totals $3 trillion in new spending, some of which targets pandemic relief. For perspective, $3 trillion is 90% of the $3.33 trillion in receipts the federal government received in the 12 months ending in April, and comes on top of $5.2 trillion in federal outlays in the past 12 months as well as about $1.5 trillion in pandemic relief already pledged but not yet spent. If there is one certainty about COVID, it is extraordinarily expensive to fight. Bloomberg News reports unexpected resistance to the bill from moderate Democrats, who question voting for legislation with no chance of becoming law, and from progressive Democrats who say it does not provide enough relief. Few Republicans are expected to vote for it, though Bloomberg News found one, Long Island Congressman Peter King, who thinks restoration of the SALT Tax deduction justifies the rest of the bill..

Read More