ExplainerUS stimulus talks: what went wrong?
- What you need to know about US President Donald Trump’s decision to scrap US stimulus talks, impact and reaction in Washington
- Trump accused House Speaker Nancy Pelosi of negotiating in bad faith. She suggested Covid-19 medication clouded Trump’s judgment
What is it?
Many economists have long urged Congress to pass another aid bill to keep individuals and businesses afloat with the coronavirus pandemic showing few signs of ending soon.
Lawmakers had intended to provide aid for specific industries including restaurants, live entertainment venues and airlines, as well as rental, mortgage, and food assistance for ordinary Americans impacted by the virus.
Democrats want a US$2.2 trillion package as a follow-up to the US$7 trillion bailout Congress and the Federal Reserve put together in the spring. Republicans initially came in lower with a US$1 trillion plan but have since raised that offer to US$1.6 trillion.
The Republican plan calls for giving workers an extra US$400 a week in unemployment insurance; the Democrats’ plan would provide for an extra US$600 a week.
Optimism that Democrats and Republicans would reach a deal on more stimulus ahead of the November 3 elections had helped lift the stock market recently.