The President took to Twitter on Tuesday to end the negotiations going over the COVID-19 fiscal stimulus deal.
“Nancy Pelosi is asking for $2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way 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. I am rejecting their request, and looking to the future of our Country.
“I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.”
Immediately after the news broke, the stock market crashed with the major indices including the Dow dropped by 376 points around 1.3%, the Nasdaq declined by 1.57% while S&P plummeted by 1.4%.
House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin were set to have more discussions around the size of the fiscal relief, followed by a series of phone calls between the two over the last week. They had not yet reached a negotiation, the last offered deal by Mnuchin was worth $1.6 trillion.
Responding to the President’s tweet, House Speaker Pelosi said that the White House was in “complete disarray”.
“Today, once again, President Trump showed his true colors: putting himself first at the expense of the country, with the full complicity of the GOP Members of Congress. Walking away from coronavirus talks demonstrates that President Trump is unwilling to crush the virus, as is required by the Heroes Act.” She said in a statement.
However, several hours later, Trump changed his course on the topic. “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!”, he tweeted.
As a reaction to this latest news, the U.S index futures rose, the S&P 500 Index gained by 0.7% recovering the loss of 0.6%. Nasdaq increased as well by 0.7% rebounding from a 0.6% loss. In the European markets, the Stoxx Europe climbed by 0.3% with the food and beverage stocks performing the best while the banking sector declined.
As for the elections, according to CNN poll results released Tuesday that was conducted after the first presidential debate and mostly after the news of his COVID-19 diagnosis, showed Biden leading over Trump by 16 points.