Unemployment: New Stimulus Is Close, But Unlikely To Arrive Before Election Day

Marco Green
October 25, 2020

"In addition to an accommodative monetary policy, more targeted fiscal support will be needed to turn this K-shaped recovery into a broad and inclusive recovery", Fed governor Lael Brainard said in a speech this week. And Meadows told reporters that Pelosi is still too uncompromising.

"We thought about $500 billion was appropriate at this juncture", he told reporters.

"We haven't seen a lot of action from Speaker Pelosi", Meadows said. "That's because she doesn't want anything to pass, she and [Senate Minority Leader] Chuck Schumer have made a calculated decision".

Talks between Pelosi and Mnuchin have been at a standstill over the past day and a half. "Why isn't [Mr. Trump] talking to his Republican friends?" Though members of both chambers could be called back for a vote with 24 hours notice, that scenario is increasingly unlikely a week before the election.

While McConnell's stated excuse for standing in the way of relief is his commitment to confirming Barrett as quickly as possible, that justification may be meant to obscure the fact that many Senate Republicans are simply opposed to additional coronavirus aid, whether or not the package would disrupt the right-wing judge's path to the Supreme Court.

Meadows and Pelosi are scheduled to make separate appearances on CNN's "State of the Union" on Sunday.

And it's not just that we're getting closer to the election that's lit a fire under negotiators.

Speaking in the Oval Office - just 11 days from the presidential election - Mnuchin, the administration's point person on negotiations, said the ball was in the California Democrat's court after months of fruitless discussions.

They have made progress on providing a national strategic testing and contract tracing plan, but key sticking points remain, including more aid to state and local governments, demanded by Democrats, and liability protections for businesses, sought by Republicans.

Pelosi said Tuesday that she found "common ground" with Mnuchin and that "both sides are serious about finding a compromise".

Trump, however, said the bill approved in the House was a "bailout" for states and cities "badly run" by Democrats, adding it will also offer money to people who have entered the country illegally.

With the pace of talks dragging, resistance from Senate Republicans is building, and Trump's ability to twist arms into supporting a deal appears to be waning. Additionally, House Democrats are reluctant to return to the Capitol if 13 Senate Republican votes can not be guaranteed to secure final passage.

Mr Shelby, the appropriations committee chairman, said he had yet to see any details of the proposals that Ms Pelosi and Mr Mnuchin had been batting around. Aides to the relevant committees say that there is little they can do until they get clearer guidance from Pelosi and Mnuchin however. "The clock is ticking". "It's a political decision that nothing is going to pass until after Election Day because they believe that they have better chances of success on Election Day".

Some Senate Republicans also said Wednesday that it might be more hard to get a relief package passed after the election.

He said that while a pre-election vote is possible, it's "probably not going to happen". But the Senate may not have time to act.

Putting off votes on a stimulus package until after the election raises the risk that the Trump administration will be less inclined or able to push a package through the GOP Senate. That likely would be amplified if Trump loses to Democrat Joe Biden and Republicans lose their Senate majority - leaving action on stimulus for the pandemic-stricken USA economy until late January at the earliest.

Republicans blanched at the enormous package and introduced several "skinny" GOP stimulus bills to deal directly with issues such as small business funding and unemployment, but Democrats have blocked them, saying they don't go far enough.

Other reports by Click Lancashire

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