No new federal coronavirus aid package expected ahead of the election – if any – House of Commons Speaker Nancy Pelosi (D-Calif.) Suggested on Wednesday that the stock market’s three-day drop could encourage President Trump and the White House to return to the negotiating table to strike a deal with the Democrats after November 3, even if Trump is not reelected next week.
In an interview with MSNBC on Wednesday, Pelosi said Trump was “very affected by the stock market” and suggested he cares deeply about the support of the “401 (k) crowd” – those voters with an eye on the market and performance. of their retirement accounts.
Stocks took a hard hit this week amid an alarming spike in new coronavirus cases and the rapidly diminishing prospect of increased federal aid.
The Dow Jones Industrial Average has fallen more than 1,500 points (nearly 6%) since the close last Friday, and the market as a whole had its worst day since June on Wednesday.
Pelosi’s comments came as his camp awaits a response from the White House on a national Covid-19 test plan – a provision that has slowed negotiations to a ramp over the past week, even though it’s far away to be the only disagreement outstanding – and the next day the Senate left town for recess until Nov. 9, while ensuring that no further federal assistance can be agreed upon or provided in the immediate future.
Trump has long proclaimed the stock market as a critical indicator of his success as President, often tweeting about ‘all-time records’ in the markets and suggesting that the growth of 401 (k) retirement accounts is proof of the good that his administration did for average Americans. Trump also hinted that a stock market crash is likely to accompany a Biden presidency: “DON’T RUIN IT WITH SLEEPY JOE,” he tweeted earlier this month.
Despite the stock market’s rapid recovery (except for the past three days) since reaching lows comparable to the 2008 crisis in March, the economy as a whole has not fared so well pulled. Unemployment claims have stabilized from devastating highs they reached in March, but experts agree labor market rebound is cooling off, with more than 23 million Americans now receiving some form of federal unemployment benefit . The potential for lockdown measures accompanying the spike in virus cases, the onset of cold weather, and the lack of some key benefits of the CARES Act (many of which expired over the summer) could all create problems for economy in the coming months.
Pelosi and the White House have argued that they will continue to work on a bill even if it is too late to provide assistance before November 3. Trump said on Tuesday that Americans would get the “best stimulus package you’ve ever seen” after the election, blaming Pelosi for the delay due to what he called a desire to bail out “cities and democratic states that are sore. managed and riddled with crime ”. Trump was referring to Pelosi’s push for additional federal aid to state and local governments, which Democrats deem necessary to avoid government layoffs and provide critical support for schools. Pelosi also said she would continue to prioritize tackling viruses regardless of the election outcome, although she would likely have an easier time passing a larger package if Democrats controlled the Senate in January. “The sooner the better,” she told TBEN’s Jake Tapper last Sunday.
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