A bipartisan group of US senators has proposed a $908bn spending package to break the deadlock on fiscal stimulus as Jay Powell, the chairman of the Federal Reserve, made a new appeal for lawmakers to provide more government support to the economy.
The proposal, led by Mark Warner, the Virginia Democrat, and Susan Collins, the Maine Republican, reflects the growing anxiety in Washington over the state of the economy. Negotiations on a new stimulus package faltered prior to the November election and have not resumed.
At a hearing before the Senate banking committee on Tuesday, Mr Powell said the recovery had been “faster” than expected, but the labour market was still 10m jobs below pre-pandemic levels.
