WASHINGTON–With credit unions and their trade groups joining much of America in awaiting a new stimulus package from Congress, President Trump said he has instructed administration negotiators to stop any negotiations on such a package until after the Nov. 3 election.
As CUToday.info has reported, House Speaker Nancy Pelosi (D-CA) and Treasury Secretary Steven Mnuchin have been in discussions in recent days and weeks as they sought to arrive at a deal on providing additional relief in response to the coronavirus pandemic.
Just three days ago the president had urged the sides to complete a deal. But on Tuesday Trump said in a tweet, “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.”
Democrats and the Trump administration had struggled to agree on a package would include and how much the proposal would cost. Democrats had earlier passed a $2.2-trillion relief bill, while Republicans had offered a $1.6-trillion package.
One component of the package would likely have a direct effect on credit unions in the form of a new wave of deposits, as among the relief provisions agreed to was another $1,200 direct payment to most Americans, funds for a second round of small business loans, money for schools and $25 billion to help cover airline payrolls/
Instead, the president said he asked Senate Maority Leader Mitch McConnell (R-KY) to "focus full time" on confirming Supreme Court nominee Amy Coney Barrett, according to MSNBC.
A spokesperson for Pelosi, Drew Hammill, said the speaker "expressed her disappointment in the President's decision.”
Response from Speaker
In response to the president’s tweet, Pelosi said the president "showed his true colors: putting himself first at the expense of the country, with the full complicity of the GOP Members of Congress." She added that "walking away from coronavirus talks demonstrates that President Trump is unwilling to crush the virus,” MSNBC reported.
There had been hopes in recent weeks a deal would be reached, which had buoyed markets. Trump's call for an end to negotiations followed by just a few hours a call by Federal Reserve Chair Jerome Powell that Congress approve more fiscal stimulus. Powell said a lack of sustained support from the federal government could "lead to a weak recovery, creating unnecessary hardship for households and businesses,” according to MSNBC.
Trump’s opponent in the November election, Joe Biden, issued a statement saying, "With literally millions of people facing hunger and evictions, and with job growth downshifting, this is no time for the president to stop negotiating. His lack of leadership throughout the process has been and continues to be a huge stumbling block."