THE NEUTRAL ZONE
A series of tweets from President Donald Trump halted stimulus negotiations, while also calling for aid for airlines, small businesses and individuals. Trump on Tuesday accused Speaker of the House Nancy Pelosi of “not negotiating in good faith” and directed Senate Majority Leader Mitch McConnell to focus instead on Amy Coney Barrett’s nomination to the U.S. Supreme Court. A few hours later, he told Congress to approve aid for airlines and small businesses in addition to a stand-alone bill for $1,200 stimulus checks.
President Trump published the first thread of tweets after he spoke with GOP leaders in Congress, who had been observing ongoing negotiations between Treasury Secretary Steven Mnuchin and Pelosi. Republicans signaled their unwillingness to approve stimulus legislation that topped $1 trillion. The current Democratic proposal is close to $2 trillion.
The original directive to halt stimulus negotiations followed warnings from Federal Reserve Chairman Jerome Powell. “At this early stage, I would argue that the risks of policy intervention are still asymmetric. Too little support would lead to a weak recovery, creating unnecessary hardship,” he said. He added that the risks of providing too generous relief are smaller.
Democrats have previously rejected the idea of passing stimulus funding on a piecemeal basis, favoring instead a single comprehensive package. Pelosi has suggested Congress could prioritize aid for the airline industry. Democratic presidential candidate Joe Biden accused Trump of having “turned his back” on small businesses, first responders, teachers and families.
Democrats and the White House Were Nearing an Agreement on Renter, Homeowner Assistance. Then Trump Tweeted. – Reason – 10/7/2020
Whether the mercurial Trump will stick to his decision to walk away from stimulus talks remains to be seen. After tweeting that he was done negotiating, the president again took to Twitter to urge the passage of a bailout for the airlines and another round of stimulus checks. It’s possible renters and homeowners will also benefit from Trump’s backtracking. If they don’t, they’ll have to wait until 2021 for more help from the feds.
Trump’s incoherent COVID bluster is destroying him — but America continues to suffer – Salon – 10/7/2020
Someone must have wised the president up to the fact that he had made a massive blunder, because by late Tuesday night he had reversed field and was issuing edicts about stand-alone bills to rescue the airline industry and send $1,200 checks out immediately. Apparently it dawned on him that trying to blackmail people into voting for him might not be the smart move. Maybe someone was able to explain to him that getting money to people before the election could actually be helpful. But who knows?
Trump Suddenly Walks Back Cancellation Of Stimulus Talks Amid Unrestrained Twitter Spree – Talking Points Memo – 10/7/2020
His about-face came in the middle of a head-spinning Twitter spree that saw Trump repost dozens of tweets, sprinkled with a few of his own, about a variety of the typical grievances the President has long held: The FBI Russia probe, negative media coverage, mail-in voting, and so on.
Trump urges Congress to pass more coronavirus aid hours after breaking off negotiations – Fox News – 10/7/2020
Mnuchin and Pelosi spoke again on Wednesday morning, during which the secretary inquired about a bailout for the airline industry, according to Hammill. “The Speaker reminded him that Republicans blocked that bill on Friday & asked him to review the DeFazio bill so that they could have an informed conversation,” he tweeted.