The United States new round of stimulus package has been stuck for a long time, causing both Bitcoin and the US stock index to fall. The IMF urgently urges Congress: Don't worry about inflation.

Amid ongoing global economic turmoil, as of December 5th, the number of Americans applying for unemployment benefits surged by 137,000, reaching a total of 853,000, marking a near three-month high. The latest round of relief legislation is still nowhere in sight, and the International Monetary Fund (IMF) has emphasized the urgency of stimulus measures, urging the U.S. to "forget about inflation."

Stimulus Stalemate Hits Financial Markets

The latest round of stimulus relief in the United States has hit a roadblock as Congress shows no concrete progress. Senate Majority Leader Mitch McConnell rejected the bipartisan relief plan proposed by the Democrats, causing a direct impact on the financial markets. The Dow Jones Industrial Average fell below the 30,000 mark to close at 29,999.26.

While Bitcoin has been gaining traction as a safe-haven asset instead of gold this year, it still shows correlation with traditional assets, experiencing a nearly 10% drop since December.

The price of gold seems to be affected by the imminent vaccine arrival. With the possibility of economic recovery increasing and a decrease in hedging demand, gold has fallen for three consecutive days, closing around $1,833 at the time of writing.

Pandemic Continues, IMF Urges Immediate Stimulus

According to the latest data from Johns Hopkins University, global confirmed cases have surpassed 69.59 million, with the death toll exceeding 1.58 million.

Additionally, new confirmed cases in the U.S. have been hitting record highs in recent months.

The International Monetary Fund (IMF), which has been very pessimistic about the global economy in the second half of the year, continues to urge the U.S. Congress to pass a stimulus package. The IMF's Chief Economist Gita Gopinath recently emphasized:

It is crucial for the U.S. to approve the stimulus bill. The unemployment relief plan passed this year (providing $600 weekly assistance) is set to expire on January 1, and time is of the essence.

Gopinath also mentioned that the expected inflation data does not indicate a significant rise in prices, so she is not concerned about the risk of printing money for relief causing uncontrollable inflation.

ECB Increases QE Efforts, Brexit Stalemate

In contrast to the U.S.'s hesitation, the European Central Bank (ECB) decided yesterday (12/10) to keep interest rates at 0%, 0.25%, and -0.5% until inflation approaches but does not exceed the 2% target. They also raised the total amount of the Pandemic Emergency Purchase Program (PEPP) from 1.35 trillion euros to 1.85 trillion euros.

Regarding the EU's refusal to negotiate on the Brexit agreement, UK Prime Minister Boris Johnson issued a warning:

We will continue to seek a Brexit deal, but we do not rule out leaving the EU without a trade agreement.

It is understood that the UK's Chief Negotiator David Frost and the EU's Michel Barnier have not reached consensus on the basis of the agreement, with significant disagreements on issues such as a level playing field, governance, and fishing waters.