U.S. markets open in 7 hours 17 minutes
  • S&P Futures

    -67.50 (-2.04%)
  • Dow Futures

    -495.00 (-1.86%)
  • Nasdaq Futures

    -280.25 (-2.47%)
  • Russell 2000 Futures

    -29.70 (-1.91%)
  • Crude Oil

    -0.75 (-2.07%)
  • Gold

    +0.80 (+0.04%)
  • Silver

    -0.03 (-0.13%)

    +0.0007 (+0.06%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    -2.69 (-6.68%)

    -0.0016 (-0.12%)

    -0.4300 (-0.41%)

    -271.58 (-2.01%)
  • CMC Crypto 200

    +16.64 (+6.86%)
  • FTSE 100

    -1.05 (-0.02%)
  • Nikkei 225

    -310.46 (-1.33%)

Trump, Pelosi Spar Over Stimulus as Aide Questions Deal Need

Justin Sink and Tony Czuczka
·3 mins read
Trump, Pelosi Spar Over Stimulus as Aide Questions Deal Need
Trump, Pelosi Spar Over Stimulus as Aide Questions Deal Need

(Bloomberg) -- President Donald Trump and House Speaker Nancy Pelosi blamed each other for a lack of progress on a new plan to support the U.S. economy, while a senior White House aide said he expects talks to continue and a Fed official said fiscal help is sorely needed.

After a week of shifting signals on the amount of stimulus and how to get there, Trump said on Fox News that Republicans are “having a hard time with Nancy Pelosi.” Pelosi labeled the administration’s offer on dealing with the health impact of the virus pandemic “grossly inadequate.”

“It is hard to understand who is shaping their approach, which to date has been a miserable and deadly failure,” Pelosi said in a letter to Democratic lawmakers released on Sunday. “Until these serious issues are resolved, we remain at an impasse.”

White House economic adviser Larry Kudlow said earlier he expects Treasury Secretary Steven Mnuchin and Pelosi to hold more talks this week. Mnuchin may increase the amount of aid the administration is offering, Kudlow said on CNN’s “State of the Union.” He didn’t elaborate.

While a stimulus deal isn’t essential to the U.S. recovery from the coronavirus pandemic, “I don’t think it’s dead at all,” Kudlow said. “All I’m saying is some targeted assistance would go a long way right now.”

Mnuchin and White House Chief of Staff Mark Meadows called on lawmakers to clear the way for spending unused funds from the Paycheck Protection Program, which offered small-business loans to keep workers employed, “while we continue to work toward a comprehensive package.”

“The all-or-nothing approach is an unacceptable response to the American people,” they said in a letter posted on Twitter by Treasury spokeswoman Monica Crowley.

Recovery Outlook

Mnuchin headed into the latest talks on Friday with a White House offer of $1.8 trillion in economic stimulus after House Democrats passed a $2.2 trillion proposal. Trump brushed aside resistance among Senate Republicans to the size of the proposed government aid.

Republicans “want to do stimulus,” Trump said on Fox’s “Sunday Morning Futures.” “We want to help the airlines again, because the airlines -- always a tough business. We want to help the restaurants, hotels.”

Pelosi in her letter focused on funding for virus testing, tracing and treatment as essential to safely reopening the economy and schools. The administration appears to have offered about $45 billion in new money, which is only 60% of “what is needed,” she said.

Kudlow was asked about Federal Reserve Chair Jerome Powell’s call last week for more government spending to protect the recovery.

Minneapolis Fed President Neel Kashkari made similar comments Sunday.

“We’re going to continue to see a grinding, very slow recovery, with thousands of small businesses around the country going bankrupt,” Kashkari said on CBS’s “Face the Nation.” “It’s so vital that our elected leaders come together to take more action.”

Kudlow earlier said that new stimulus was “just getting Americans through a difficult period of time” as the economy bounces back from shutdowns and other measures taken to control the coronavirus.

“I don’t want to parse, but I don’t think the recovery is dependent on it,” he said.

The U.S. will post strong economic growth in the third and fourth quarters, Kudlow said, bouncing back from the historic dive in the second quarter.

(Updates with Mnuchin and Meadows letter in sixth paragraph.)

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.