President Trump called Speaker Pelosi’s bluff and told his team to walk away from negotiations.
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. I am rejecting their offer.
What Trump failed to mention was that Pelosi’s $2.4 trillion stimulus was laden with non-Covid pork like mail-in, early balloting.
The consequences of the withdrawal of federal fiscal support are tangible and immediate. American Airlines Group Inc. and United Airlines Holdings Inc. said they would start laying off 32,000 workers, blaming expiring government aid, the latest in a drumbeat of mass job cuts. Walt Disney Co. is slashing 28,000 workers while Allstate Corp., the fourth-largest car insurer in the U.S., announced it will cut 3,800 jobs, roughly 8% of its workforce. (Bailing out companies makes little sense, but stimulus to employees makes more sense).
The US Treasury yield curve declined on the news.