US President Trump stops negotiations on aid package.
The US economy is in recession, but a new aid package is not in sight: US President Trump has now stopped negotiations with the Democrats. He doesn’t want to say goodbye to a package until after the election – as a winner.
US President Donald Trump has canceled negotiations with the opposition Democrats about a new Corona aid package until after the presidential election on November 3rd.
He accused Nancy Pelosi, the President of the House of Representatives, of not negotiating “in good faith”. The Democrats, Trump’s Republicans and the government have been wrestling for weeks over a new aid package to support citizens and businesses, in the face of the devastating effects of the corona pandemic. Opposition leader Pelosi last spoke repeatedly on the phone with Treasury Secretary Steve Mnuchin.
The Democrats had proposed spending around $ 2.2 trillion on the aid package. The Trump administration described this as “dubious”, but recently increased its offer to almost 1.6 trillion dollars. Pelosi refused – no compromise was in sight.
Trump’s move was criticized by his challenger Joe Biden. More help is needed to help the millions who lost their jobs during the pandemic, he said.
The United States has the most infections and deaths in the world.
US President Donald Trump also has to take criticism from within his own ranks. Republican Senator Susan Collins called the decision to end the talks a “big mistake”. Senate Majority Leader Republican Mitch McConnell, on the other hand, agreed with Trump:
The President wrote that he has now asked Senate Majority Leader Mitch McConnell to focus fully on confirming his Supreme Court candidate, Amy Coney Barrett, before the election.
Only after the presidential election, does US President Trump want to deal with the aid package again.
In polls, however, US President Trump is currently behind his challenger Joe Biden of the Democrats.
Immediately after Trump’s announcement, there were losses on the US stock exchanges. Federal Reserve Chairman Jerome Powell had previously stated that the tentative economic recovery from the recession would remain fragile in the seventh month of the pandemic, without further economic stimulus from the government and could fail. According to Powell, without more government aid, it would be “stronger and faster”.
The Head of the Central Bank District of Cleveland, Loretta Mester, was disappointed after Trump’s announcement. The preliminary end of the talks should lead to the economy recovering much more slowly than originally expected, Mester said.
In the fight against the effects of the corona pandemic, the US Congress passed the largest aid package in US history, the so-called Cares Act, with a volume of 2.2 trillion dollars. Another aid package worth around $ 500 billion followed at the end of April.
But for now, US President Trump has stopped negotiations on an aid package.