WASHINGTON–Can a deal on some sort of stimulus/relief package be reached in Congress before the current lame duck session ends?
A number of Washington analysts are saying it appears increasingly unlikely even as members of both parties say they want to get a deal done.
“Neither side is signaling any interest in backing down, with both saying they have more leverage because of the elections,” reported The Hill in its analysis.
As The Hill reported, Senate Minority Leader Charles Schumer (D-NY) said the "starting point" on any agreement should be the $2.2 trillion coronavirus bill passed by the House in October, the same line Democrats have held for months.
"Joe Biden has won, now move on and work with us to solve the COVID crisis," Schumer said. "The American people are waiting for relief from the COVID virus, but Republicans refuse to take comprehensive action that meets the needs of the country."
But as The Hill further noted, Senate Republicans are digging in on the roughly $500 billion figure that they have previously backed. Senate Majority Leader Mitch McConnell (R-KY) is making it clear that he wants any deal to mirror a smaller package that has been blocked twice by Senate Democrats.
‘Not a Place We’re Willing to Go’
"My view is the level at which the economy is improving further underscores that we need to do something at about the amount that we put on the floor in September and October. Highly targeted at what the residual problems are," McConnell told reporters.
McConnell was quoted by The Hill as warning the "dramatically larger" figure being pushed by Schumer and House Speaker Nancy Pelosi (D-CA) is "not a place I think we're willing to go."
According to The Hill, in a “post-election setback for Democrats,” McConnell is taking over the reins of any negotiations from Treasury Secretary Steven Mnuchin, according to GOP senators. The decision significantly shifts the dynamics because the administration, before the election, had indicated it could agree to $1.9 trillion or higher, while that figure was always dead in the water with Senate Republicans.
Fed’s Powell Calls for Relief
Meanwhile, Federal Reserve Chairman Jerome Powell warned that the U.S. economy will likely need further support from Congress and the central bank even if a coronavirus vaccine becomes available by the end of the year.
"There's going to be a probably a substantial group of workers who are going to need support as they find their way in the post-pandemic economy because it's going to be different in some fundamental ways," Powell said during a virtual appearance on a panel hosted by the European Central Bank, The Hill reported.