White House economic adviser Larry Kudlow on Tuesday projected that the total economic stimulus to be enacted by the federal government will reach $6 trillion.
Of the total, $4 trillion will come in the form of liquidity from the Federal Reserve, while the remaining $2 trillion will be part of proposed phase-three legislation from Congress. If the total assistance does reach $6 trillion, that would equal about 30 percent of U.S. GDP.
The phase-three legislation will be “the single largest Main Street assistance program in the history of the United States,” Kudlow said at a press conference Tuesday evening.
“We’re heading for a rough period, but it’s only going to be weeks, we think. Weeks [or] months, but it’s not going to be years, that’s for sure,” Kudlow added.
Lawmakers have not agreed on a final stimulus package as of Tuesday evening, despite optimism earlier in the day from Treasury Secretary Steve Mnuchin that a deal was within reach. Senate Democrats twice voted to deny cloture to debate the stimulus on the Senate floor, moves that received harsh criticism from Republicans.
Anticipation of a deal on the stimulus drove a stock market surge on Tuesday that saw the largest one-day gain for the Dow since 1933. Meanwhile, President Trump said he hoped the U.S. would be able to relax coronavirus containment measures by Easter (April 12).
“We’re opening up this incredible country. Because we have to do that. I’d love to have it open by Easter,” Trump said during a virtual Fox News town hall event.
Later on Tuesday, Dr. Anthony Fauci, head of the National Institute of Allergy and Infectious Diseases, said that while it might be possible to relax containment in some areas of the country, those decisions would be made according to data at the time.
“You can look at a date [to ease restrictions] but you’ve really got to be flexible,” Fauci told reporters.