Donald Trump has ordered his administration to stop negotiating a stimulus plan with the House of Representatives. After more two months of hectic talks, House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin were reportedly moving closer towards a compromise. However, all of that progress has been erased now that the US President does not want any new stimulus bills.
The announcement came just after Federal Reserve Chief Jerome Powell stated that the economy is not in a good shape. Powell urged the government to provide more stimulus, arguing that doing more than perceived necessary will have fewer side effects than doing nothing, with millions of unemployed Americans struggling amid the pandemic.
Trump received a lot of criticism from the Democratic Party and some of his own fellow Republicans who would like to see an economic recovery. The President instead stated that he will pass a generous stimulus bill after he is re-elected, thus making the funding that so many urgently need a part of his campaign.
While the US President is convalescing from the coronavirus in the White House, Vice President Mike Pence is to meet Joe Biden’s running mate Kamala Harris for the VP debate tonight, which may contribute to dollar volatility.
Despite the end of the stimulus talks and the upcoming elections, today stock indices are recovering. Experts argue that this is a corrective movement to undo some of Monday’s losses.
The most important fundamental event today will be the minutes from the Federal Reserve’s most recent meeting, but with Jerome Powell’s recent speech, the tone of that report will most likely be predictably pessimistic.
