Donald Trump backs new round of massive stimulus for US economy

Donald Trump has said the US will launch a second round of the giant stimulus measures used to prop up the world's largest economy as it swoons from the effects of the virus.

The US President said he wanted to send cheques to all taxpayers, after $300bn (£240bn) of direct payments were handed to households to boost consumer spending in the spring.

"I do, I support it, but it has to be done properly," Mr Trump said when asked by Fox Business Network if he supported a second round of stimulus payments.

He indicated that the upcoming payments could be larger than the last round, in which Americans were paid up to $1,200 each.

American legislators in the Democrat-led Congress are also working on a stimulus package, although Mr Trump claimed he planned to go further, indicating the new measures could be larger than previous efforts. "I support actually larger numbers than the Democrats."

The consumer-led US economy contracted at an annual rate of 5pc in the first quarter of the year, before the worst effects of lockdown measures, and the slump is expected to have been much worse in the second quarter.

The unemployment rate spiked to 14.7pc in April, and although it recovered slightly in May, a resurgent virus outbreak has led to fears that lockdown measures may have to be tightened, rather than relaxed, in the coming weeks.

The President said he wanted "a tremendous incentive for people to go back to work", suggesting he is less keen on extending higher unemployment benefits.

Mr Trump's poll numbers have dropped in recent weeks heading into November's election.