Even though the negotiations are still on and the White House has increased their offer, it is still very unlikely that there will be another coronavirus stimulus package or checks before the November election. This is because several Senators don’t seem happy with the White House raising their offer to $1.8 trillion for the coronavirus relief package, which includes stimulus checks.
Coronavirus stimulus checks: Senators against enormous package
Earlier last week, President Donald Trump ended all stimulus talks, saying the negotiators weren’t making any progress. Two days later, Trump resumed the negotiations, saying things are "starting to work out."
CIO Of One Of The World’s Most Successful Hedge Funds Presents His Top Long And Short
Egerton Capital was co-founded in 1994 by John Armitage. Since then, the firm has yielded huge profits for its investors. Some estimates put the total value of investing earnings at over $20 billion, making it one of the most profitable hedge funds of all time. Q3 2020 hedge fund letters, conferences and more SORRY! This Read More
Then on Saturday, the Trump administration came up with a proposal of $1.8 trillion. Though this offer was more than their earlier offer of $1.6 trillion, it was still $400 billion less than what Democrats want. The House Democrats recently passed a stimulus proposal (HEROES Act 2.0) costing $2.2 trillion.
As was expected, House Speaker Nancy Pelosi rejected the offer. Additionally, several Republican Senators, on Saturday, suggested that they wouldn’t support any deal before the election.
Senate Republicans: What did they say?
Several senators believe that the White House is offering too much money, according to Politico.
"There’s no appetite right now to spend the White House number or the House number," Sen. Lamar Alexander of Tennessee said, according to Politico.
Separately, Sen. John Barrasso of Wyoming said that giving in to Pelosi on anything seen as expansion of Obamacare in the next stimulus package will be seen as “an enormous betrayal by our supporters.”
Also, Sen. Marsha Blackburn said handing Pelosi a win would mean the "death knell" for the party's majority in the Senate. Further, Sen. Mike Lee of Utah suggested that voting on the stimulus bill would leave less time for confirming Judge Amy Coney Barrett on the Supreme Court. Sen. Rick Scott of Florida believes that another stimulus package would slow down the economy.
Several Republicans also criticized Federal Reserve Board chairman Jay Powell, who recently talked in favor of a stimulus package.
Even Senate Majority Leader Mitch McConnell is pessimistic on the next relief package before the election. "The situation is kinda murky, and I think the murkiness is a result of the proximity to the election," McConnell said Friday.
McConnell said everyone is trying to get a "political advantage" from this stimulus package. He believes the deal could only happen if all of “us rise above” like they did at the time of the CARES Act but “I think that's unlikely in the next three weeks."
Many, however, believe a relief package after the November election may be too late. Several industries, such as airlines, are waiting for aid to pay furloughed workers. Also, millions of unemployed Americans are waiting for another stimulus package. Though the unemployment rate has come down, the number of Americans applying for jobless benefits are still significantly high.