Trump Postponed Negotiation on Coronavirus Relief. What happened?
President Trump ended negotiations with Democrats on a new Coronavirus relief package until after the election, which he said he was sure to win.
- Budget talks between Democratic Speaker of the House Nancy Pelosi and Treasury Secretary Steve Mnuchin started in July surrounding the possibility of another COVID-19 stimulus check for Americans. Two bills are in the works which could provide relief for Americans affected by the economic impact of COVID-19, but negotiations are ongoing.
- On Saturday, Donald Trump Tweeted, “OUR GREAT USA WANTS & NEEDS STIMULUS. WORK TOGETHER AND GET IT DONE. THANK YOU!”
- Yesterday, Federal Reserve Chair Jerome Powell released a statement that a tentative recovery from the pandemic recession would not happen unless the federal government supplied additional relief to Americans.
- Hours later, Trump Tweeted that the Democratic stimulus proposal was unreasonable and that Nancy Pelosi was “not negotiating in good faith.” Trump said that he has “instructed [his] representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill…” and implored Senate Majority Leader Mitch McConnell to shift his focus away from a relief bill and onto the more pressing issue of confirming Supreme Court nominee Amy Coney Barrett.
- In a statement yesterday, Mitch McConnell told reporters that he supports Trump’s decision and intends to follow his instructions, saying that “we need to concentrate on the achievable.”
- Democrats have responded vitriolically to the statement. Biden Tweeted that the President “turned his back” on Americans, while Nancy Pelosi said of the President, “forget about him.”
- Stock prices fell significantly in the hours following Trump’s statement. The Dow ended the day down 1.3%, while the S&P 500 lost 1.4% and the NASDAQ lost 1.6%. US bond yields also dropped significantly in response to the news.
- Blames Trump for single-handedly ending relief talks, calling him a poor negotiator and comparing him to a dictator for making such a unilateral decision in the interest of political theater.
- Reports that Trump’s decision to delay talks will have a massive negative impact on millions of Americans, who he might as well have told to “drop dead“.
- Points out that his decision has already tanked the stock market and gone directly against the wishes of Federal Reserve chairman Powell.
- Speculates that the decision could cost him the election.
- Highlights the difference between Trump, who was able to afford the best and most immediate medical care for his COVID diagnosis, and average Americans, who are out of work and need a stimulus check.
- Blames Nancy Pelosi and the Democrats for ending relief talks by not compromising sooner on the terms of their bill, which is an unreasonable “left-wing wish list.”
- Frames the decision as a “pause” in negotiations, rather than an end to negotiations as is conveyed on the Left.
- Points out that the HEROES Act, the Democrat-sponsored relief bill, includes stimulus checks for illegal immigrants and temporary protection from deportation.
- Reports that Trump remains open-minded to a reasonable proposal for COVID-19 relief, including a deal similar to the one passed earlier this year or more stop-gap negotiations.
- Is generally sympathetic and supportive of Trump’s prioritizing a SCOTUS confirmation over fruitless negotiations with democrats.
© Evelyn Torsher, 2020