US House Speaker Nancy Pelosi says there are still big differences in negotiations over fiscal stimulus with Treasury Secretary Stephen Mnuchin.
In a Bloomberg TV interview, Pelosi said it was simply not to accept the White House’s proposal, but to close the deal.
“This is not half a lump. What they offer is the heel of the lump,” Pelosi said. “It is useless to enter into a negotiation to take the least path. resistance.”
The conversation between Pelosi and Mnuchin continues on the phone at 1pm this afternoon, but the presenter expressed skepticism to his colleagues at the beginning of Thursday about the possibility of a deal. Mnuchin said progress was made, but the two met on Wednesday for about 90 minutes without reaching an agreement.
At a morning press conference, Pelosi said both sides were still far apart on the amount of total stimulus and how it was distributed. Many of the same stubborn points that have caused the current deadlock, including support for state and local governments, still remain.
“I hope the needs of the American people are so great that we can reach an agreement,” Pelosi said. “But you have to be aware that you need money to do that.”
Both sides are facing pressure to act as more companies, including airlines that have been aided by previous federal assistance, announce job cuts, and have little time to act before the November 3rd election.
The S&P 500 index rose more than half after Pelosi’s skepticism was reported. This week, the US stock market was shaken by speculation about whether it could reach a stimulus package.
When asked if President Donald Trump would participate directly in the negotiations, White House reporter Kaylee McKennaney said the government offered a “good proposal” to compromise spending levels, but Democrats were still looking for an unacceptable clause.
“First I’d say Nancy Pelosi isn’t serious,” McEnany said Thursday. “If she gets serious, you can discuss it here.”
House Democrats have proposed a $2.2 trillion stimulus package that Pelosi described as a “caller” in negotiations with the White House. Republican lawmakers rejected it.
Mnuchin said Trump had instructed negotiators to “go out quite a bit” in an initial GOP proposal for a $1 trillion pandemic relief plan.
According to those familiar with the offer, they have offered Pelosi up to $1.6 trillion, some of which is funded by unused small business aid funds. This includes $400 per share for additional unemployment insurance, which is less than the $600 Democrats want, but more than the $300 the White House put forward, people said. The package will also provide $250 billion in assistance to state and local governments. That’s $100 billion more than the previous White House offer, but not as much as Democrats say they need it.
White House Chief of Staff Mark Meadows told reporters on Wednesday night, “I think the President made a very good and generous offer that addresses most, if not all, problems. “But we still have a difference in money and priorities for that allocation. The discussion will continue.”
Meadows said the Trump administration’s anti-proposal was “definitely over the $1.5 trillion stated so far,” but “starting with two, there will be real problems.”
House Democrats are planning to vote on a $2.2 trillion proposal, down from the $3.4 trillion the House passed in May. Senate majority leader Mitch McConnell said Wednesday that the plan is filled with “poisons” that have nothing to do with epidemic relief.
The House of Representatives is due to leave Washington later this week, but members will return if there is a stimulus vote. Except for Amy Coney Barrett’s late October vote on the nomination for the U.S. Supreme Court, most senators can leave after next week. You can also call again once the deal is closed.
Officials on both sides have personally questioned whether the difference can be bridged. With no progress in talks on Wednesday, stocks close well at session highs, blurring optimism over financial markets’ stimulus package.
Trump and his aides have continued to express confidence that the economy is recovering, but the pandemic continues to resonate with businesses and workers. Walt Disney Co. said on Tuesday it would cut 28,000 workers from a sluggish resort business in the United States. American Airlines Group Inc. said it would start hiring 19,000 employees on Thursday night on Wednesday. United Airlines Holdings Inc. plans to reduce more than 13,000 pieces.
“What I worry most about now is that 19,000 American Airlines have just learned that there will be another break. There will probably be other airlines,” Meadows said he boarded Air Force One on Wednesday night.
Civilian economists are increasingly giving up their predictions of pre-election stimulus packages. JPMorgan Chase & Co. And Goldman Sachs Group Inc. lately Cut their predictions As a result, for the next quarter growth.
Conflict on state and local aid
At the heart of the disagreement was the push of Democrats to demand massive aid to local and state governments. Their plan, announced Monday, has $435 billion in one-year support, which is less than the previous demand for $915 billion in the past, which has led to the contempt of Trump administration officials who called it bailouts for a poorly operated country. Aroused.
The Democratic plan included new support for airlines, restaurants, and small businesses that both sides wanted as part of the package, though not in the original house package. It is also more than twice the amount originally offered to the school.
The bill would provide direct relief to individuals with $1,200 less than $1,200 to dependents originally proposed by the Democrats, and $500 per dependent.
Pelosi said Thursday that negotiators were trapped in expanded tax cuts for corporate losses included in March’s bipartisan viral bill. Democrats have since said they oppose tax cuts that give oil companies and real estate investors $160 billion.
What are similar tax cuts Reportedly permit According to The New York Times, Trump uses his losses to offset the gains associated with appearing in “The Apprentice” and demands a $72.9 million tax refund, which is currently being audited by the IRS.
— With the help of Justin Sink