Everything seemed to indicate that this week the Democrats and Republicans were going to reach an agreement on the economic stimulus plan, until Trump has arrived and has turned the wheel 180 degrees. "I have instructed my representatives to stop negotiating until after the elections. ", that's how blunt the president has been through his Twitter account.
The twist in the script comes after analysts took it for granted. The optimism was such that the main New York indices have been rising for several days in the heat of the progress in the negotiations. Some advances that have been erased at a stroke, after knowing Trump's intentions Wall Street has turned red and has registered falls of more than 1%.
But what is the reason that Donald Trump takes refuge? Well, according to literal words that Nancy Pelosy "is not negotiating in good faith". Democrats offer a stimulus plan of 2.4 trillion dollars, a figure that for Trump has nothing to do with the fight against Covid-19.
Trump claims that the only thing Pelosy is looking for with this amount is "rescue poorly run, high-crime Democratic states". The Republicans had made a counter offer of $ 1.6 trillion.
It won't be until after the elections "immediately after I win"when Republicans put aid back on the table. "We will pass a major stimulus bill that focuses on working Americans and small businesses."
The Secretary of the Treasury, Steven Mnuchin, and the Speaker of the House of Representatives, Nancy Pelosi, have been negotiating for several days, negotiations that were scheduled to continue today. Yet Trump has asked Mnuchin to focus "full time on approving my outstanding nominee to the United States Supreme Court, Amy coney barrett".
SURPRISE AMONG THE EXPERTS
Trump's decision has taken everyone by surprise. Experts predicted that the agreement was closer than ever. "Over the weekend, President Trump urged both parties to reach an agreement. It is clear that the US leader wants to make positive headlines in the last weeks before the presidential elections," explained the CMC Market analysts after the advances of the last days.
The cancellation of the negotiations is just one of the many contradictions that Trump is accustomed to. Just three days ago, the president himself tweeted from his profile people that "our great US wants and needs encouragement." Some stimuli for which he asked to "work together".
The words of the president of the Fed, Jerome Powell, of this same Tuesday have also fallen on deaf ears. The leader of the Federal Reserve has called on Democrats and Republicans to agree. Has alerted that lack of stimulus puts economic recovery at risk.
"The recovery will be stronger and faster if monetary policy and fiscal policy continue to work hand in hand until the economy is out of danger," Powell said.
Before even knowing Trump's intentions, Powell has warned that backing down with fiscal and monetary aid jeopardizes momentum and may trigger a further recession that it would resemble a more traditional recession and therefore more difficult to recover. "Weakness feeds on weakness," the Fed chairman qualified.