Congress adopts $1.9 trillion stimulus; Dow jumps up

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FILE PHOTO: The U.S. Capitol stands as Democratic lawmakers draw up an article of impeachment against U.S. President Donald Trump in Washington, U.S., January 11, 2021. REUTERS/Joshua Roberts/File Photo

Congress approved a sweeping $1.9 trillion coronavirus relief package, authorizing a flurry of new federal spending and a temporary yet dramatic increase in anti-poverty programs to help millions of American families still struggling amid the pandemic.

The 220-211 vote in the House of Representatives almost entirely along party lines will now go to Biden’s desk one of the largest economic package, promised by Democrats as their first acts of governance after securing narrow but potent majorities in Washington after the 2020 presidential election.

The American Rescue Plan, provides up to $1,400 for most Americans, extends additional, enhanced unemployment aid to millions still out of a job, and makes major changes to the tax code to benefit families with children. It couples the new pandemic relief with what Democrats have come to describe as one of the most robust legislative responses to poverty in a generation, seeking to assist low-income families.

The news of the plan has resonated with investors. The dow jumped 500 plus points.

Meanwhile, consumer prices rose 0.4% in February, mostly in line with expectations. Excluding food and energy, prices rose 0.1% vs. the 0.2% consensus.

The 10-year Treasury yield slipped slightly following the announcement. It was trading around 1.54%, well off Friday’s high of 1.62%. Yields could also be affected by Wednesday’s 10-year Treasury auction, which takes place at 1 p.m. ET.