Pelosi Optimistic on Relief, Says Trump's Illness Alters Dynamic
Comment of the Day

October 02 2020

Commentary by Eoin Treacy

Pelosi Optimistic on Relief, Says Trump's Illness Alters Dynamic

This article by Billy House for Bloomberg may be of interest to subscribers. Here is a section:

“This kind of changes the dynamic,” Pelosi said on MSNBC Friday. “Here, they see the reality of what we have been saying all along.”

She said she was optimistic that a bipartisan bill can emerge.

The stimulus negotiations have made some halting progress over the past two months, but the two sides remain far apart on how much of a boost to provide and where it should be directed. Democrats in the House on Thursday passed a $2.2 trillion package -- down from the $3.4 million plan they passed in May -- as their offer in the latest talks. Mnuchin has proposed a plan of about $1.6 trillion.

The negotiations are taking place amid signs the U.S. economy is struggling to recover from pandemic-induced shutdowns. Job gains slowed in September and many Americans quit looking for work, suggesting the economic recovery is downshifting. Americans’ incomes fell in August by the most in three months after the government’s supplemental unemployment benefits expired, the Commerce Department reported Thursday.

Eoin Treacy's view

The PPP moratorium on firing workers expired on Wednesday. That event was greeted with a large number of headline-grabbing layoffs announcements. The continued pace of job growth despite the layoffs got less attention. The big question for markets is when a fiscal deal will be agreed.

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