With the nation still reeling from the effects of the global pandemic, ongoing negotiations between Democratic and Republican leadership about providing further economic stimulus have been broken off until after the election in November at the order of the president, CNN reported.
Although negotiations to that point were reportedly still far from achieving a deal, talks had been continuing all the same.
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President Trump announced an end to the negotiations with a tweet on Tuesday.
After attacking Speaker of the House Nancy Pelosi, the president tweeted that he was “rejecting their request, and looking to the future of our Country. I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.”
The president went on to suggest he was prioritizing pushing through his Supreme Court nomination in the Senate, tweeting that “I have asked Mitch McConnell not to delay, but to instead focus full time on approving my outstanding nominee to the United States Supreme Court, Amy Coney Barrett,” while downplaying the economic damage done by the pandemic.
The president’s announcement was met with pushback from both Republicans and the markets.
Minutes after his tweets appeared online, the Dow Jones Industrial Average sank by 400 points, NBC reported.
Several prominent Republicans went on the record calling for the president to reverse his decision.
Senator Susan Collins called President Trump’s decision a “huge mistake,” according to CNN, and GOP Rep. John Katko tweeted “I disagree with the President. With lives at stake, we cannot afford to stop negotiations on a relief package…I strongly urge the President to rethink this move.”
The president did appear to backtrack somewhat later in the day.
In a series of tweets, President Trump suggested Congress look at passing smaller bills rather than a large stimulus package.
“The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business,” he tweeted . “Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!”
The president also wrote that he would support a single bill “for Stimulus Checks ($1,200),” saying “I am ready to sign right now.”
However, for now the Republican leadership seems to be focused on confirming Supreme Court nominee Amy Coney Barrett.
Senate Majority Leader Mitch McConnell told CNN that he supported the president breaking off negotiations. “I think his view was that they were not going to produce a result and we need to concentrate on what’s achievable,” McConnell said.
Wednesday morning, White House senior economic advisor Larry Kudlow appeared to affirm that to Washington Post reporter Jeff Stein.
“We’ve only got four weeks to the election, & we have a justice of the Supreme Court to get passed. It’s too close to the election — not enough time to get stuff done at this stage in the game,” Stein quoted Kudlow as saying.
Speaker Pelosi responded to Trump’s announcement with a statement of her own.
“Clearly, the White House is in complete disarray. Sadly, they are rejecting the urgent warnings of Fed Chairman Powell today, that ‘Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,'” Pelosi wrote .
Jerome Powell, chairman of the Federal Reserve, has called for increased economic stimulus, saying the nation’s economic recovery has “a long way to go,” and that “the risks of overdoing it seem, for now, to be smaller,” CNBC reported.
h/t: CNN
