President Donald Trump tweeted Wednesday that stimulus talks will resume after the elections. A few hours later, he went back. President Donald Trump called Congress to approve a second $1,200 stimulus check to millions of Americans.
Tuesday night, Trump tweeted his support for stand-alone legislation to approve relief payments. The tweet said: “If I am sent a Stand-Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY. I am ready to sign right now,” Mr. Trump tweeted Tuesday night. Apart from the standalone stimulus checks, Trump also called for other individual legislation. This includes bailing out the airline industry and fund the Paycheck Protection Program.
Earlier, Trump said he wanted all negotiations paused until after the elections. With less than a month before elections, the White House wants to focus on independent bills. Democrats refused to deal with this wholesale. Separate bills run counter to their broad multi-trillion-dollar aid package. According to Chief of Staff Mark Meadows: “The stimulus negotiations are off. We’re looking at the potential for stand-alone bills.” Many are unsure whether lawmakers will listen to the President’s latest call. Some even wonder if there is enough time to do so.
Democrats Not Interested in Individual Bills
House Speaker Nancy Pelosi (D., Calif.) said that Democrats oppose the passing of individual bills. During an appearance on “The View,” she said: “It’s hard to see any clear, sane path in anything he’s doing,” referring to Trump. Pelosi added: “All he has ever wanted in the negotiation was to send out a check with his name printed on it.” Speaking to Fox Business Wednesday morning, Meadows countered that Pelosi is slow-walking negotiations. He thinks Democrats are delaying to help them win the election. Meadows concluded: “The point is that Pelosi does not want the checks to go to the American people before Nov. 3.”
The House Speaker did send word that she is open to an airline-relief bill. She spoke with Treasury Secretary Steven Mnuchin Wednesday and will do so again the next day. Pelosi Spokesman Drew Hammill said that Mnuchin “inquired about a standalone airline bill.” The Speaker “reminded him that Republicans blocked that bill on Friday.” She then “asked him to review the DeFazio bill so that they could have an informed conversation.” This is in reference to House Transportation Committee Chairman Peter DeFazio. Last Friday, he tried to pass an extension of expiring aid for airlines. Republicans did not agree to the bill, as they weren’t consulted.
Stocks Surged As Hopes Renewed for 2nd Stimulus Check
Upon reading Trump’s newer tweet, US stocks surged on Wednesday with new hope for stimulus. On Wednesday’s close, the S&P 500 was up 1.7% to 3,419.45 points. The Dow Jones industrial average rose 531 points (1.9%) to 28,303.46, up 1.9%. The Nasdaq composite also went up 1.9% to 11,364.60.
Airline stocks, seen as a major beneficiary, began climbing Wednesday. United Airlines Holdings rose 4.3% to $36.38 per share. American Airlines Group went up 4.3%, to $13.07. Delta Air Lines gained 3.5% to $32.15.
Earlier, the Federal Reserve said more fiscal stimulus is essential to economic recovery. In their last meeting, the Fed argued that a lack of added fiscal stimulus can disrupt recovery.
Financial analysts are expecting delays in the stimulus programs. They remain upbeat about the economy. JPMorgan said that the US economy can survive the year, as long as stimulus funds get released by early 2021. Morgan Stanley agreed. They said the economy can avoid a double-dip recession even without aid before November 3.
Democrats disagreed with Wall Street. Without stimulus measures, the US will be in trouble. Representative Alexandra Ocasio-Cortez (D) predicts that without aid, the US economy would be “staring down the barrel” of mass evictions.
Maybe after the Elections
Investors are skeptical that any measures will happen before the elections. Many believe that the next round of stimulus checks can only happen after the elections. And for that to happen, a clear victory by either party must happen. Michael Bell, a global strategist for JP Morgan, says the market prefers clarity. He said: “The market’s base case is that we’re going to get some stimulus post-election. In many ways, a clear election result which leads to some stimulus—whether it’s Republican-led or Democrat-led—is better than an unclear result which leads to continued lack of stimulus.”
Watch this ABC10 reports that President Donald Trump has issued a challenge to Speaker Nancy Pelosi to send him a bill for $1,200 stimulus checks only, which he will sign immediately:
Do you agree a second stimulus check can still happen this month by way of an individual bill? Or have you resigned yourself to a possible stimulus check after the elections? Let us know what you think by sharing your comments below.