Trump’s Hurdles to Stimulus Climb After Abrupt Tactical Shift, , on October 10, 2020 at 10:00 am

Financial News
By
On October 10, 2020
In Financial News
Tags:

(Bloomberg) — President Donald Trump scrapped fiscal stimulus talks this week after failing to swing Senate Republicans behind a package Democrats could support. With negotiations back on, the obstacles are just as daunting.Treasury Secretary Steven Mnuchin heads into weekend negotiations with House Speaker Nancy Pelosi with the top-line number for relief fast approaching the $2 trillion level that many Senate Republicans say they cannot accept.Mnuchin has already alienated some in his party by moving toward policies in the House Democrats’ $2.2 trillion proposal that they oppose. His counteroffer contains language allowing taxpayer-funded abortions through Obamacare and stimulus checks to undocumented immigrants, according to a person familiar with the matter — measures anathema to many GOP lawmakers.After a months-long deadlock, the stimulus talks took on a desperate appearance this week. Trump on Tuesday tried to blame Pelosi for refusing to compromise, and pulled out his negotiators. Hours later, he demanded separate bills for aid including stimulus checks for individuals and aid to airlines. By Thursday, comprehensive talks were back on.Then came Friday. With his poll deficit to Joe Biden widening and the need to divert attention from his handling of the coronavirus escalating, Trump endorsed an even bigger stimulus proposal. Just how big a number he wants hasn’t been entirely clear.Negotiators UndercutMnuchin made a $1.8 trillion offer to Pelosi Friday — an increase from the $1.6 trillion the White House had previously endorsed. Yet Trump undercut that by saying he wants an even bigger stimulus than what the Democrats advocate.“I would like to see a bigger stimulus package, frankly, than either the Democrats or the Republicans are offering,” Trump said on Rush Limbaugh’s radio program, adding that he’s going in the “exact opposite” direction from his earlier stances.Shortly after, the White House communications director, Alyssa Farah, told reporters the administration wants a package below $2 trillion, sowing further confusion.Democrats’ $2.2 trillion plan, passed by the House earlier this month, is down from the $3.4 trillion package they approved in the chamber in May.Senate VoteSenate Republicans backed a bill offering about $650 billion last month, showcasing the gulf with the House. But if Mnuchin and Trump can get Pelosi to sign off on an agreement for less than $2 trillion, it would be hard for Senate Majority Leader Mitch McConnell not to put it up for a vote, according to a Senate GOP aide.Trouble is, the president’s suggestion he wants something bigger than the Democratic proposal could also harden Pelosi’s demands for larger-scale spending.Then there’s the timeline. For Trump — and vulnerable moderates from both parties — unveiling a deal after Election Day would garner no campaign benefit. It took 19 days after enacting the last stimulus, in March, to send out stimulus payments to individuals, Goldman Sachs Group Inc. analysts pointed out. There are now 24 days left until the election.Crafting a pre-election bill may prove a hurdle too high. McConnell said on Friday that there’s probably not enough time.Barrett Is the Priority“I believe that we do need another rescue package, but the proximity to the elections and the differences of opinion about what is needed are pretty vast,” McConnell said at an event in his home state of Kentucky.The majority leader later told reporters that “even if an agreement” on stimulus is reached, his first priority is securing Senate confirmation of Trump’s nominee for the Supreme Court, Amy Coney Barrett. Hearings for her nomination are scheduled to begin Monday with a final Senate vote as soon as the week of Oct. 26.If Pelosi and Mnuchin did reach an agreement, Congress would likely need two weeks or more to draft legislative text and approve it in the House and Senate. The Senate is on recess until Oct. 19 and the House until mid-November, but lawmakers have been told they can be called back with 24 hours notice to vote on any stimulus deal.If it came to a vote, Republican lawmakers may be the key obstacle.Further DisputesMcConnell has said there are members of his majority who think the government has already provided enough stimulus. House Republican leader Kevin McCarthy of California has also said his caucus members are skeptical of a large package. “We’d have to see what’s in it, but I think it’s difficult,” he said last month.The two sides are are divided on issues including how much money to provide state and local governments, language restricting Trump’s ability to divert anti-virus health care spending and the level and length of supplemental unemployment benefits. Dozens of smaller arguments, such as on funding for election security and the U.S. Postal Service, also remain.Many of the policy issues are “at least as controversial as the top-line number,” Goldman analysts including Alec Phillips wrote in a note Friday.“An appearance of additional progress seems likely over the next several days,” with Trump pushing for a deal, they wrote. But “we haven’t changed our view that substantial fiscal stimulus is unlikely to pass before the election,” the Goldman team concluded.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.,

Trump’s Hurdles to Stimulus Climb After Abrupt Tactical Shift(Bloomberg) — President Donald Trump scrapped fiscal stimulus talks this week after failing to swing Senate Republicans behind a package Democrats could support. With negotiations back on, the obstacles are just as daunting.Treasury Secretary Steven Mnuchin heads into weekend negotiations with House Speaker Nancy Pelosi with the top-line number for relief fast approaching the $2 trillion level that many Senate Republicans say they cannot accept.Mnuchin has already alienated some in his party by moving toward policies in the House Democrats’ $2.2 trillion proposal that they oppose. His counteroffer contains language allowing taxpayer-funded abortions through Obamacare and stimulus checks to undocumented immigrants, according to a person familiar with the matter — measures anathema to many GOP lawmakers.After a months-long deadlock, the stimulus talks took on a desperate appearance this week. Trump on Tuesday tried to blame Pelosi for refusing to compromise, and pulled out his negotiators. Hours later, he demanded separate bills for aid including stimulus checks for individuals and aid to airlines. By Thursday, comprehensive talks were back on.Then came Friday. With his poll deficit to Joe Biden widening and the need to divert attention from his handling of the coronavirus escalating, Trump endorsed an even bigger stimulus proposal. Just how big a number he wants hasn’t been entirely clear.Negotiators UndercutMnuchin made a $1.8 trillion offer to Pelosi Friday — an increase from the $1.6 trillion the White House had previously endorsed. Yet Trump undercut that by saying he wants an even bigger stimulus than what the Democrats advocate.“I would like to see a bigger stimulus package, frankly, than either the Democrats or the Republicans are offering,” Trump said on Rush Limbaugh’s radio program, adding that he’s going in the “exact opposite” direction from his earlier stances.Shortly after, the White House communications director, Alyssa Farah, told reporters the administration wants a package below $2 trillion, sowing further confusion.Democrats’ $2.2 trillion plan, passed by the House earlier this month, is down from the $3.4 trillion package they approved in the chamber in May.Senate VoteSenate Republicans backed a bill offering about $650 billion last month, showcasing the gulf with the House. But if Mnuchin and Trump can get Pelosi to sign off on an agreement for less than $2 trillion, it would be hard for Senate Majority Leader Mitch McConnell not to put it up for a vote, according to a Senate GOP aide.Trouble is, the president’s suggestion he wants something bigger than the Democratic proposal could also harden Pelosi’s demands for larger-scale spending.Then there’s the timeline. For Trump — and vulnerable moderates from both parties — unveiling a deal after Election Day would garner no campaign benefit. It took 19 days after enacting the last stimulus, in March, to send out stimulus payments to individuals, Goldman Sachs Group Inc. analysts pointed out. There are now 24 days left until the election.Crafting a pre-election bill may prove a hurdle too high. McConnell said on Friday that there’s probably not enough time.Barrett Is the Priority“I believe that we do need another rescue package, but the proximity to the elections and the differences of opinion about what is needed are pretty vast,” McConnell said at an event in his home state of Kentucky.The majority leader later told reporters that “even if an agreement” on stimulus is reached, his first priority is securing Senate confirmation of Trump’s nominee for the Supreme Court, Amy Coney Barrett. Hearings for her nomination are scheduled to begin Monday with a final Senate vote as soon as the week of Oct. 26.If Pelosi and Mnuchin did reach an agreement, Congress would likely need two weeks or more to draft legislative text and approve it in the House and Senate. The Senate is on recess until Oct. 19 and the House until mid-November, but lawmakers have been told they can be called back with 24 hours notice to vote on any stimulus deal.If it came to a vote, Republican lawmakers may be the key obstacle.Further DisputesMcConnell has said there are members of his majority who think the government has already provided enough stimulus. House Republican leader Kevin McCarthy of California has also said his caucus members are skeptical of a large package. “We’d have to see what’s in it, but I think it’s difficult,” he said last month.The two sides are are divided on issues including how much money to provide state and local governments, language restricting Trump’s ability to divert anti-virus health care spending and the level and length of supplemental unemployment benefits. Dozens of smaller arguments, such as on funding for election security and the U.S. Postal Service, also remain.Many of the policy issues are “at least as controversial as the top-line number,” Goldman analysts including Alec Phillips wrote in a note Friday.“An appearance of additional progress seems likely over the next several days,” with Trump pushing for a deal, they wrote. But “we haven’t changed our view that substantial fiscal stimulus is unlikely to pass before the election,” the Goldman team concluded.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

168 Robinson Road,
Capital Tower, Singapore 068912
+65 3105 1295

Taiwan

5th Floor, No. 1-8, Section 5, Zhongxiao East Road, Taipei

Hong Kong

R91, 3rd Floor,
Eton Tower, 8 Hysan Ave.
Causeway Bay, Hong Kong
+852 3002 4462

Australia

44 Martin Place, Sydney 2000 Australia
+02 8319 3232

Indonesia

Millennium Centennial Center, 38th Floor, Jl. Jend. Sudirman Kav. 25
Jakarta 12920, Indonesia

Market Coverage