Millions of Americans who have lost their jobs face an uncertain future and increased financial hardship after President Donald Trump halted ongoing stimulus talks. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi had opened talks in the hope of crafting legislation that could have seen Americans awarded $1200 checks in addition to other perks.
However that was not to be as President, Donald Trump, has turned down the Democratic stimulus offer of $2.2 trillion as the stalemate between Republicans and Democrats persists ahead of the election. The president has since instructed his representatives not to negotiate until after the election. The suspension sent the markets tumbling with a sharp drop on Tuesday.
In a Tweet, President Trump insisted that Pelosi was holding on for a 2.4 trillion dollar bailout to finance poorly run, high crime democratic states and that the bailout was not in any way tied to COVID-19. The President has since instructed Republicans to focus on approving Amy Coney Barrett as the next Supreme court Judge.
With stimulus, talks suspended, millions of unemployed and underemployed people as well as business owners, are staring at hard times amid the effects of COVID-19. Airlines that were hoping for another round of bailout are now poised to lay off tens of thousands of people as the federal help is not coming any time soon.
The U.S economy has since been thrown into peril after a string of disappointing economic releases in recent weeks. Stimulus packages had helped trigger spending activity at the peak of the pandemic. With the check now gone, economic activities are likely to slow down.
Federal Reserve Chair Jerome Powell has already warned of the potential risk of moving forward without a bailout package. He has already warned that too little support would lead to a weak recovery, conversely creating hardships for many households.
While Trump has refuted the $2.4 trillion proposed stimulus plan as too much, the FED chair insists that the risks of overdoing it on stimulus seem smaller.
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