D.he American President Donald Trump has instructed the government and his Republicans not to negotiate another Corona stimulus package with the Democrats until after the election. In return, Trump promised on Tuesday on Twitter that there would be a major stimulus package “immediately” after an election victory on November 3rd. Trump wants to secure a second term in office in the election. His rival Democratic candidate is former Vice President Joe Biden.
The Democratic negotiator, the chairman of the House of Representatives Nancy Pelosi, was not willing to compromise, Trump complained on Tuesday on Twitter. His side proposed a package worth $ 1.6 trillion. But the Democrats had insisted on 2.4 trillion, he claimed. In an initial reaction, the economy reacted with alarm. The Dow Jones index of standard values closed 1.3 percent lower to 27,772 points. The technology-heavy Nasdaq lost 1.6 percent to 11,154 points. The broad S&P 500 lost 1.4 percent to 3360 points. In Frankfurt, the Dax was 0.6 percent firmer at 12,906.02 points from trading.
“The White House is clearly in complete disorder”
Opposition leader Pelosi also sharply criticized Trump for breaking off the talks. Trump shows his “real face” once more and puts himself first “at the expense of the country,” said the chairman of the House of Representatives on Tuesday. “The White House is clearly in complete disarray.”
“By running away from the coronavirus talks, President Trump is proving that he is unwilling to destroy the virus,” continued Pelosi. Trump shows his “contempt” for science and the “heroes” of the world of work.
Since March, the American Congress has already launched stimulus packages with a volume of around three trillion dollars, which corresponds to more than ten percent of economic output. The two big parties have now been arguing about another package for months.
The Republicans, who control the White House and Senate, have a minor stimulus in mind. The Democrats, who have a majority in the House of Representatives, want a comprehensive package that is also intended to help states and municipalities that have to cope with large revenue losses due to the corona pandemic.
Federal Reserve Chairman Jerome Powell had spoken out in favor of further measures to support the economy just hours before Trump’s announcement. The risk of inadequate support is currently greater than the risk of “doing too much,” said the head of the Federal Reserve (Fed). The recovery will be “stronger and faster” if monetary and fiscal policy work hand in hand “until the economy is out of the woods”.