Categories: Market Overview

House Democrats approve $2.2 trillion stimulus bill as talks drag on

Democrats pushed through the House on Thursday night a $2.2 trillion economic stimulus plan, putting down a marker as their leader, House Speaker Nancy Pelosi, continues to talk with Treasury Secretary Steven Mnuchin on an coronavirus aid deal. While the bill will not be considered in the Senate, where Majority Leader Mitch McConnell has said it’s too expensive, it may wind up serving as the House Democrats’ final bid before heading home for the remaining few weeks of the fall election campaign.

But instead of unifying the Democratic caucus behind Pelosi in her talks with Mnuchin, the bill showed some cracks in party resolve. It passed on a narrower-than-expected 214-207 tally, with a handful of moderate Democrats defecting to join all House Republicans in opposition.

With lawmakers eager to leave Washington, time is running out for a deal to be reached, and the sides at least publicly appeared to be relatively far apart. The last White House offer was reportedly about $1.6 trillion, well below House Democrats’ $2.2 trillion ask.

But Pelosi said on some issues, like support for expanded coronavirus testing, the issue was not dollars and cents. “It’s the language. It’s not just the money,” she said.

The vote is a blow to the Pelosi-Mnuchin talks though, as it put most Democrats on the record for a bigger bill than what the Pelosi-Mnuchin talks could eventually yield and will allow Democrats to leave Washington claiming to have tried to get a package enacted.

Time is running short to reach a deal, and even if Mnuchin and Pelosi were to come to an agreement, lawmakers would still need a few days to get legislative text written and voted on. But with much of the economic kick from the CARES Act exhausted and airlines threatening to furlough tens of thousands of workers in the coming days, lawmakers also feel pressure to get something done.

Pelosi said Democrats were already looking ahead to the post-election lame-duck legislative session in preparing their offer, noting some priorities could be given additional money in a deal to extend government appropriations past Dec. 11.

House Democrats approve $2.2 trillion stimulus bill as talks drag on, MarketWatch, Oct 2

The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team

Recent Posts

Bitcoin’s Downtrend, Solana and Ethereum Form Double Bottom

Market picture  Crypto market capitalisation rose 3.3% in 24 hours to $2.22 trillion. Local capitalisation…

5 hours ago

EURJPY Wave Analysis 2 May 2024

- EURJPY under strong bearish pressure - Likely to fall to support level 163.10 EURJPY…

19 hours ago

WTI crude oil Wave Analysis 2 May 2024

- WTI broke round support level 80.00 - Likely to fall to support level 76.00…

19 hours ago

ADP hints at another strong NFP on Friday

The monthly ADP labour market report showed that America created 192K new jobs in April, above…

2 days ago

Fed’s hawkish tone risks sinking S&P500 to 4700

Bears showed strength ahead of the FOMC decision.  U.S. indices sagged on Tuesday as investors…

2 days ago

A new stage of Bitcoin’s decline

Market Picture  Bitcoin's closing price on Tuesday became the lowest since late February, confirming the…

2 days ago

This website uses cookies