On October 20, local time, the US White House and Democratic negotiators stated that they will continue to work hard to reach a new bailout agreement after the negotiations “make progress.”
Although the market gave a positive interpretation of this report that the U.S. stock market rose on that day, many investors were dissatisfied with the appetite of the bailout bill.
The game and drag that lasted for several months has made many people tired. Analysts said that the reason why the bailout negotiations were sluggish was related to the political considerations before the general election, and the two sides of the negotiations are currently improving their tune and criticizing each other’s political motives.
Bailout bill sees light
According to the “Wall Street Journal” report, the Speaker of the U.S. House of Representatives and California Democrat Pelosi previously stated that she hopes that the
White House can finalize enough questions before the end of October 20 to determine whether it can be before the November 3 election. Passing a new round of bail-out bill has aroused great concern from all walks of life.
After the discussion that day, both parties expressed that they are willing to continue the discussion without knowing whether an agreement can be reached.
After Pelosi had a 45-minute conversation with U.S. Secretary of the Treasury Mnuchin on the afternoon of October 20, Pelosi’s spokesperson Drew Hammill tweeted that as they approached an agreement.
In one step, the discussion between the two parties “provides more clarity and common ground.” Hammill said that the October 20 deadline set earlier allows the negotiating parties to see the possibility of reaching an agreement and exchanging views, indicating that both parties are seriously seeking compromise.
White House Chief of Staff Meadows stated on the US Consumer News and Business Channel (CNBC) that the talks on the 20th were “very fruitful” and that discussions can be continued on the 21st.
He added that Pelosi and the Trump administration are currently trying to reach some kind of agreement before the weekend.
What remains doubtful is that any agreement close to $2 trillion may be boycotted by the Republican-controlled Senate. According to the Wall Street Journal, citing sources familiar with the matter, Senator McConnell, the leader of the majority party in the Senate and Republican of Kentucky.
Said at the weekly luncheon of the Republicans in the Senate on the 20th that he had advised the White House not to be in the Senate Republicans before the election. Internal divisions are created, and a $2 trillion compromise plan will lead to divisions within the party.
However, US President Trump said on the 20th that he is willing to support a larger bailout bill than Pelosi’s proposal, but did not provide specific details. Despite the potential opposition from Republicans in the Senate, Trump stated that he is willing to pass the bill with the support of Democrats.
The negotiation process is sluggish
The culmination of the bailout negotiations this week is that according to multiple US media reports in the past two days, Pelosi and Mnuchin are close to reaching a consensus.
Trump also said that Senate Republicans will not deliberately obstruct. These seemingly positive statements, combined with months of wrangling, made the suspense about whether an agreement could be reached this week, and the appetite of all parties was suffocated.
However, even if progress has been made, the negotiation process still appears to be muddled.
Pelosi’s spokesperson Drew Hammill wrote on Twitter on October 19 that Pelosi and Mnuchin “continued to narrow their differences” during the 53-minute call on the new round of rescue measures.
Hammill said that Pelosi hopes that by the end of October 20, there will be a “clear” result on whether the new round of bailout bill can be passed before the November 3 election. He also said that when Pelosi and Mnuchin meet again on the 20th
the relevant staff will continue to work “day and night”.
Pelosi herself previously stated that despite differences with the Trump administration on the bailout clause, she is still optimistic about the bill.
But she also said that an agreement must be reached before the end of the 20th before it is possible to pass before the election. The White House had previously proposed a $1.8 trillion rescue plan.
Pelosi rejected the plan at the time and insisted on her 2.2 trillion dollar rescue plan.
From the above game process, it can be seen that the scale of the bailout bill is the focus of dispute between the two parties. Since Congress passed a $3 trillion rescue plan earlier this year, many Republicans are unwilling to pass another massive rescue plan again.
McConnell said on October 19 that the Senate will vote on a simplified version of a US$500 billion proposal for specific needs on the 21st.
He also said that the Senate will also vote on a new round of salary protection plans for small businesses.
But the Democrats have always opposed the adoption of separate relief measures in different areas and insisted on the need for a larger overall relief plan.
Senate Democratic leader Schumer described the Republican plan as “weak”, saying that it abandons the needs of state and local governments and that unemployment benefits are insufficient. In fact, the Democrats in the Senate vetoed a similar simplified version of the measure in September.
Schumer’s remarks also pointed out another important difference between the two parties apart from the scale of the rescue plan-whether and how to assist the state and local governments.
In addition, the two sides also have games and see-saws in many areas such as child care funds, low-income American tax credits, and corporate responsibility protection.
Analysis believes that even if Pelosi and Mnuchin finally reach a difficult compromise, many people within the two sides will not be satisfied.
Mutual criticism of “political motives”
The two parties inevitably blamed each other and exposed each other’s “political motives” to the bailout negotiations that sapped the appetite of all parties but were still dragging their feet.
Trump recently accused Pelosi of reluctance to reach an agreement “in order to gain a campaign advantage.” “The problem is that she doesn’t want to take any action before the election because she thinks it’s good for her.”
Trump told Fox News, “I want a larger plan than the Democrats. Not every Republican. They all agree, but they will agree.” Trump has stated more than once that he is willing to introduce a plan larger than the $2.2 trillion supported by the Democratic Party, showing that he is not “stingy” on the issue of helping the American economy and people. “The person.
When speaking to the Senate, McConnell increased her attack on Pelosi, accusing her of adopting an “all or nothing” stance on approving more relief measures.
He said: “The Speaker of the House of Representatives should stop this Marie Antoinette-style behavior.” Antoinette was the queen of French King Louis XVI, famous for the French Revolution, McConnell’s metaphor So it is quite controversial.
Mnuchin previously stated that part of the reason for the difficulty of the bailout bill is that Democrats are no longer optimistic that they will win the Senate majority on November 3 and do not want to give Trump a bargaining chip.
The White House economic adviser Kudlow even said that Pelosi “has been playing tricks on us” during the negotiations. He called Mnuchin “disheartened” by this.
But the Democrats unanimously retorted that the White House has never taken the new crown pneumonia epidemic or the need for a new round of rescue plans seriously, and has always acted like a contradictory and unpredictable negotiator, often not knowing what it wants.
Pelosi used to describe the situation in the White House as “a mess,” and there were even reports that when she was talking on the phone with Democratic congressmen, someone mentioned whether Trump’s drugs would affect his judgment.
Pelosi had previously set the tone that the Democrats opposed the adoption of so-called independent rescue measures without reaching a broader agreement. “In everything he (Trump) does, it is difficult to see any clear and sensible line.” She said, “All he wants in the negotiation is to send a check with his name on it. “
Schumer said a few days ago that Americans need an emergency rescue bill, and the Republican proposal is still unacceptable. Regarding the simplified version of the Senate proposal to be voted on on the 21st, Shu defaulted to being “weak” and full of “poison pills” for this political show, and it was doomed to fail.
