Hopes of another stimulus package have all but faded away with President Donald Trump now promising a deal post-election. House Speaker Nancy Pelosi, however, hopes that the current selloff in the stock market could prompt Trump to come back to the negotiation table to talk on the coronavirus stimulus package, including checks.
Can stock market sell-off trigger coronavirus stimulus checks talks?
On Wednesday, speaking on MSNBC, Pelosi said that Trump "cares a lot" about the stock market.
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"As he sees the market react to the spread of the virus and sees the market react to the fact that we do not have an agreement—which could inject resources into the economy—hopefully now he will come to the table in a serious way," Pelosi said.
Pelosi’s comment comes as the stock market continues to bleed this week as new cases surge and hopes of more federal aid fades. Since last Friday’s close, the Dow Jones Industrial Average has dropped by about 6% (1,500 points), while the broader market had its worst day on Wednesday since June.
On Monday, the Dow Jones Industrial Average lost 650 points. Then it dipped again on Tuesday and on Wednesday, the index lost 943 points, its worst since June. Since the first week of September, the Dow Jones has lost about 2,400 points.
On many occasions, Trump has indicated the stock market performance as a measure of his success as president. Many times he has tweeted about “all time highs” in the stock market, as well as boasted about the growth in 401(k) retirement accounts as an achievement of his administration in serving average Americans.
Also, in a tweet earlier this month, he urged Americans not to ruin the stock market performance rally by voting for “sleepy” Biden.
A deal highly unlikely before election
There is almost no chance of a stimulus package before the election now. House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin talked on Monday, but were unable to reach an agreement. Now Trump, who has been pushing for a deal before the election, also admits that the stimulus package would come post-election.
Trump on Tuesday told reporters that he would come up with the “best stimulus package you've ever seen" after the election.
Additionally, the Senate has been adjourned since Monday's confirmation of Judge Amy Coney Barrett. Now, Senators are expected to reconvene after the election. However, they could be called back on 24-hour notice if there is a stimulus deal before the election (Nov. 3).
Meanwhile, both Pelosi and the White House assert that they will continue to work on the stimulus package even though legislation is unlikely before Nov. 3.
Despite three months of negotiations, the lawmakers have failed to come up with a stimulus deal. As per a Morning Consult survey, 45% of American voters hold Trump and the Republicans responsible for no stimulus package. On the other hand, 40% blame Democrats for no deal.