Donald Trump sowed confusion over stimulus talks on Tuesday, breaking off negotiations with congressional Democrats on a new US aid package before switching course and attempting to draw lawmakers back into discussions.
The US president’s mixed messages, delivered in a flurry of tweets, came a day after he returned to the White House following three days in the hospital where he was treated for coronavirus.
Donald Trump had triggered a sell off in US equity markets on Tuesday afternoon when he called for an end to negotiations on additional stimulus until after the November 3 presidential election.
The move will leave many American households and industries, from restaurants to airlines and hotels, facing further financial distress in the coming weeks and Jay Powell, chair of the Federal Reserve and economists has warned that the lack of government support could endanger America’s retrieval from the pandemic – a wide array of business groups have also baulked at the President’s move.
But on Tuesday evening, Donald Trump appeared to have backtracked from totally ditching negotiations and the President made separate requests for lawmakers to approve further funding for airlines to stop thousands of job cuts, more support to small businesses and direct government payments worth up to $1,200 for most people.
He wrote in one tweet, ‘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. Are you listening, Nancy? (referring to Nancy Pelosi), the Democratic Speaker of the House of Representatives.
The S&P 500 index closed down 1.4 per cent on Tuesday, having earlier traded higher and Treasury bonds yields fell as investors sought the relative safety of government debt.
Equity markets in Asia regained some footing following Donald Trump’s turnaround. Japan’s Topix was down 0.1 per cent on Wednesday afternoon and Hong Kong’s Hang Seng index added 0.6 per cent.
Nancy Pelosi and Steven Mnuchin, the Treasury secretary, have endeavoured to restrict differences on a more overall package but failed to come to an agreement.
Democrats have been pushing for £2.2 trillion in new spending, whereas the Trump administration has been willing to go up to $1.6 trillion, with numerous Republican lawmakers on Capitol Hill saying even that was outrageous.
Donald Trump called on Republicans to walk out of negotiations after a call with senior administration officials and Republican members of Congress to discuss talks and the President said the biggest sticking point in the negotiations was the Democratic demand for aid to cash strapped state and local governments, without which they will have to force through aggressive budget cuts.
Remember the years of the really Republican administration? Like Ronald Reagan, Bush, and the USA was the beacon of leadership and democracy – not anymore and not for many years in the future.
It’s called holding a country hostage and bullying it into voting for Donald Trump again – ransom money, how very presidential, but eventually, the Tangerine Tragedy will put the final nail in his own coffin and there are many people out there that truly hope it happens.
Donald Trump puts his country first – but only after himself of course. Along with extortion, blackmail and he’s getting away with all sorts of criminality, all for his ego and this is a nice piece of leveraged extortion for public legislation during a national calamity befitting a NYC landlord and a Reality Show Host.
Donald Trump is trying to bully people into voting for him and withholding resources to those that need them most and will probably have paid more taxes than he has in the last 15 years.