The day at a glance | December 29, 2020

The Top

·     The House of Representatives in the US approved increasing aid checks proposed by Trump.

·     Economic indicators: Mexico`s International Reserves ($195,441M USD).

Economic environment

The House of Representatives approved increasing direct deposits to citizens from $600 to $2,000 dollars as part of the stimulus package. Close to 40 republicans joined Democrats in approving the increase in direct deposits, which was originally proposed by President Trump after his last criticisms. The bill will be sent to the Senate, which is controlled by Republicans, and will most likely be stopped. Senate Majority Leader Mitch McConnell has made no mention of Senate plans to discuss and vote on the proposal, but Republicans have shown consistent opposition to the idea; this initiative could be substituted by another in the Senate, or could even be ignored. An important part of what happens to the project in the short term will depend on the President and the pressure he is able to place on Republican Senators. Trump has expressed in recent days his dissatisfaction and anger with McConnell and other leaders of the party after he didn’t receive enough support to boost electoral results in November. He recently criticized Republicans for not approving greater direct deposits to citizens as part of the fiscal package and even threatened not to sign it. Democrats have seize the opportunity to divide Republicans and pushed for an increase in direct deposits. If the Senate decides to ignore the proposal it will probably end up in the hands of the new administration led by Joe Biden, who has expressed he will seek for additional stimuli immediately after taking office.