President Donald Trump proposed a $ 850 billion package to save the US economy

President Trump and Treasury Secretary Mnunchin. Photo: AP.
President Trump and Treasury Secretary Mnunchin. Photo: AP.

The Trump administration proposed a $ 850 billion bailout package to rescue the US economy from the collapse scenario caused by the Covid-19 epidemic after the stock market fell to a record point.

Reuters on March 17 said the administration of President Donald Trump is proposing the US congressional congress to approve a plan to provide a $ 850 billion bailout package to support the economy in the context of the Covid-19 epidemic that caused the economy to The world’s largest economy wobbled over the past week.

US Treasury Secretary Steven Mnuchin discussed with Republican senators to outline the proposed measures to be used, including direct pumping of large amounts of cash to the market.

Detailed plans will continue to be discussed on March 17.

Earlier, the US stock market on March 16 had the worst free-falling day in 30 years. The Dow Jones and S&P 500 spread across the worst trading session since “Black Monday” in 1987 when plunging 12.9% and 12%, respectively. The Nasdaq saw its deepest day loss in history: 12.3%.

The Cbloe Volatility Index – a “measure of fear” on Wall Street – soared to the highest level in history: 82.69 points. Even during the 2008-2009 financial crisis, this index only climbed to 80.74 points.

US stock prices plummeted despite the Federal Reserve (FED) cut basic interest rates to nearly 0% and announced a program to buy assets of $ 750 billion. The number of new strains of corona virus in the US increased to 4,281, including 70 deaths, putting enormous pressure on the market.

Recently, President Trump acknowledged that the Covid-19 epidemic could last until August in the United States. After the market fell free, Mr. Trump reassured: “The US government will support maximum industries seriously affected by Chinese viruses, such as aviation. We will become strong. stronger “.