Trump refuses to move forward with Stimulus negotiations
Donald Trump’s tweets last night regarding stimulus negotiations saw both gold and the stock market drop 2% during the day. He called off stimulus negotiations until after he “wins the election”, and has instructed his representatives to do the same. He included in the tweet that “immediately after I win, we will pass a major Stimulus Bill…“. This is essentially a means of holding the election hostage with the threat of no more stimulus support. Lack of government support at this time will have a serious impact on hardworking Americans and small businesses.
What do people think of this?
Many of the comments on twitter claimed he was blackmailing the country, claiming that he’s acting petty, or that he’s holding the elections hostage. It’s easy to see where they’re coming from when you see the negative impact that his words have not only on the markets but also on the average American. With unemployment at 7.9%, according to the Labour of Bureau Statistics, and many people working reduced hours, lack of stimulus support will have families struggling to make ends meet.
But isn’t there a risk of doing too much?
All of this comes just after Federal Reserve Chair Jerome Powell warned that the economic recovery is still not complete. He also said that there will be “recessionary dynamics” if the spread of Covid-19 is not curbed and the economic growth isn’t sustained. He went on to say that there is more risk of doing too little as opposed to not enough. We’ve seen the Fed Chair already make dramatic moves to help the economy recover through unconventional methods, and that he’s not afraid of overdoing it.
“Even if policy actions ultimately prove to be greater than needed, they will not go to waste. The recovery will be stronger and move faster.”