Negotiations on a new massive stimulus package have been going on for two weeks, but the White House and Democrats seem unable to reach an agreement. The amount of support alone is a subject of discussion. The Democrats initially wanted to release about $ 3.4 trillion for new aid, while the White House would rather see $ 1 trillion.
Nancy Pelosi, Democratic Speaker of the House of Representatives, for a compromise amount of 2.4 trillion was rejected by US Treasury Secretary Steven Mnuchin. “I told them not to come back until they are willing to offer a higher amount,” Pelosi said after the failed talks.
Mnuchin said Pelosi is unwilling to reach a partial agreement. He is said to have approached certain points of contention, such as the amount of extra unemployment benefits in the corona period. There was also disagreement in discussions about financial aid to states and local governments, another major issue.
Many aid measures introduced since the corona crisis will soon expire or have already ended. Republicans and Democrats therefore agree that new stimulus measures should be introduced. For example, unemployment in the world’s largest economy is still high, despite an improvement in recent months.
Trump announced earlier this week that he would be making decisions on his own about measures regarding crisis measures in the absence of an agreement. For example, he would like to extend extra support for the unemployed by decree, postpone the collection of wage tax and prevent tenants from being evicted from their homes. Such interventions could be done as early as this weekend, said White House Chief of Staff Mark Meadows.
The most important financial news every morning.
Invalid email address. Please fill in again.