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Trump ends stimulus talks, brings down Wall Street

2020-10-06T19:48:01.275Z


"I asked my representatives to stop negotiating until after the elections," tweeted the US president, accusing the leader of the Democrats in Congress of not negotiating "in good faith".


While Democrats and Republicans have been leading fierce negotiations for more than two months, Donald Trump simply decided to end them on Tuesday.

He thus announced that he had decided to no longer negotiate with the Democrats on a new plan to help Americans and small businesses to deal with Covid-19.

Read also: United States: support for the economy in crisis, stake in a showdown in Congress

"I asked my representatives to stop negotiating until after the elections,"

tweeted the US president, accusing the leader of the Democrats in Congress Nancy Pelosi of not negotiating

"in good faith".

"As soon as I win, we will vote on a big aid plan that will focus on American workers and small businesses," he added.

A new budgetary boost is however considered crucial by economists to allow the world's largest economy to raise its head, after being brought to its knees by the pandemic which has paralyzed many economic sectors.

The Trump administration and Congress were trying to agree on a new aid package for households and businesses.

Democrat Nancy Pelosi and Treasury Secretary Steven Mnuchin had resumed a daily rhythm of negotiations for nearly a week.

But the differences between Republicans and Democrats remained too great.

The total amount of aid, in particular, was a problem, with Republicans wanting a smaller first deal, even if it means returning to the negotiating table if necessary, while Democrats demanding a major plan immediately.

The announcement by the US president comes as US Central Bank (Fed) President Jerome Powell, hours earlier, warned of the disastrous consequences that were threatening the US economy without additional help for households and businesses.

“It could trigger a typical recession dynamic, as weakness feeds on weakness,”

he said.

“A long period of needlessly slow progress could continue to exacerbate existing disparities in our economy.

It would be tragic, ”

he further warned.

The White House and Congress had already adopted at the end of March a gigantic stimulus plan of 2.200 billion dollars.

But the measures put in place are gradually expiring, in particular additional aid for the unemployed and loans to small and medium-sized enterprises.

Wall Street reacts

The announcement of the US president had serious consequences on the New York Stock Exchange, which turned sharply in the red on Tuesday within an hour of closing.

Around 7:05 p.m. GMT, the Dow Jones Industrial Average yielded 1.11% to 27,836.53 points, the Nasdaq lost 1.29% to 11,186.16 points and the extended S&P 500 index dropped 1.20% to 3,367.73 points.

The indices of the New York place were in the green shortly before the tweets of the tenant of the White House, candidate for his own succession.

Source: lefigaro

All news articles on 2020-10-06

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