Oct. 6 (UPI) — President Donald Trump ordered White House representatives to stop negotiating with Democrats on a new coronavirus relief package Tuesday afternoon, prompting a tumble on Wall Street.
Less than one day after returning to the White House from being hospitalized for COVID-19, the president rejected a $2.4 trillion House stimulus package.
House Speaker “Nancy Pelosi is asking for $2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19. We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith,” he tweeted.
“I am rejecting their request, and looking to the future of our Country. 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.”
He said he also instructed Senate Republican leader Mitch McConnell to focus on confirming his nominee, Amy Coney Barrett, to the Supreme Court.
Though he boasted of the stock market being “at record levels” in the series of tweets, major U.S. indexes dropped sharply in the wake of his announcement.
The Dow Jones Industrial Average dropped from the day’s high of 28,340 down by about 600 points at its lowest. The index closed at 27,799, down 1.34% from opening.
The S&P 500 fell from the day’s high of 3,429 down by about 73 points at its lowest. The index closed at 3,362, down 1.4% from opening.
And the Nasdaq Composite fell from the day’s high of 11,384 down by about 242 points at its lowest. The index closed at 11,163, down 1.57% from opening.
The House passed its latest version of the HEROES Act on Tuesday, shaving off about $1 trillion from its original bill passed in May.
It includes $600 in weekly unemployment benefits through January and a second round of $1,200 payments to taxpayers, as well as $500 for dependents. It also sets aside $182 billion for grade schools, $39 billion for post-secondary institutions and $57 billion for childcare support and would add funds to the Paycheck Protection Program.
Republicans, represented by Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows in negotiations — have sought a much narrower bill.
Federal Reserve Chairman Jerome Powell on Tuesday urged policymakers to provide more economic and fiscal stimulus, saying that skimping now could “lead to a weak recovery.”
“The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods,” he said.