WASHINGTON, D.C. – Hours after instructing his administration to stop negotiating the next stimulus bill until after the general election in November, President Donald Trump tweeted that he wants Congress to do more.
In response to a CNBC tweet, which stated that "BREAKING: Fed Chair Powell calls for more help from Congress, says there’s a low risk of ‘overdoing it,’ Trump retweeted with the response, "True!"
Earlier on Tuesday, Trump made the announcement in a series of tweets, in which he accused Democratic leaders of asking for a $2.4 trillion “bailout” for blue states for things not related to COVID-19.
“We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith,” said Trump of Speaker of the House Nancy Pelosi. “I am rejecting their request and looking to the future of our Country.”
Pelosi soon responded with a statement, accusing Trump of putting himself first at the expense of the country and saying the GOP members of Congress are complicit. Read her response below:
“Walking away from coronavirus talks demonstrates that President Trump is unwilling to crush the virus, as is required by the Heroes Act. He shows his contempt for science, his disdain for our heroes – in health care, first responders, sanitation, transportation, food workers, teachers, teachers, teachers and others – and he refuses to put money in workers’ pockets, unless his name is printed on the check.
“At the same time, the President is abandoning meeting the needs of our children as they adjust to learning in-person, virtual or hybrid. Instead, Trump is wedded to his $150 billion tax cut for the wealthiest people in America from the CARES Act, while he refuses to give real help to poor children, the unemployed and America’s hard working families.
“Clearly, the White House is in complete disarray. Sadly, they are rejecting the urgent warnings of Fed Chairman Powell today, that ‘Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses. Over time, household insolvencies and business bankruptcies would rise, harming the productive capacity of the economy and holding back wage growth. By contrast, the risks of overdoing it seem, for now, to be smaller. Even if policy actions ultimately prove to be greater than needed, they will not go to waste.’”
In his tweets, the president also added that he’s asked Senate Majority Leader Mitch McConnell to instead focus full-time on confirming Judge Amy Coney Barrett’s nomination to the U.S. Supreme Court.
Trump also claimed the "economy is doing very well." However, the country is still in the midst of a recession due to the shutdowns related to the coronavirus pandemic. In September, the national unemployment level stood at about 12.58 million people.
After Trump’s stimulus announcement, stocks dropped suddenly on Wall Street. The Dow Jones Industrial Average swung instantly from a gain of about 200 points to a loss of about 300 points.
Earlier in the day, Federal Reserve Chair Jerome Powell warned that a tentative recovery from the recession could falter unless the federal government supplies additional economic support.
Powell is urging Congress to come through with more aid, saying that too little support “would lead to a weak recovery, creating unnecessary hardship for households and businesses."
Later on Tuesday, Trump gave specific proposals:
The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!
— Donald J. Trump (@realDonaldTrump) October 7, 2020