According to the head of the National economic council of the White House, Lawrence Kudlow, the stumbling block is the requirement of Democrats to include in the stimulus package measures of targeted support for certain categories of the population and areas of the economy.
The US administration hopes to agree with Democrats in Congress on a new package of economic stimulus measures to overcome the pandemic’s effects before the country’s General election on November 3. This was stated on Sunday on CNN by the head of the White House’s National economic council, Lawrence Kudlow.
He was asked whether the possibility of reaching a consensus on this issue with the opposition Democratic Party before the election was excluded. “No, I don’t think so at all,” Kudlow replied, informing that on Sunday night, he made inquiries about this from Treasury Secretary Steven Mnuchin following his last consultations with the Speaker of the house of representatives of the US Congress, Nancy Pelosi. “I believe that an agreement is still possible,” the head of the National economic council of the White House continued.
According to him, the stumbling block is the Democrats’ demand to include in the next package of incentives measures of targeted support for certain categories of the population and areas of the economy. “The economic recovery is on a V-shaped trajectory. One of the key issues is employment support, but the relevant presidential decree will not last forever. Everyone is interested in providing additional preferential loans to small and medium-sized enterprises <…>. The President [of the United States Donald Trump] is fully in favor of continuing the program of direct assistance to the population by mailing money checks,” Kudlow concluded.
On October 6, the head of state announced the termination of the above-mentioned consultations on Twitter. Trump conditioned his decision on the Democrats ‘ demand to increase the number of funds allocated to $2.4 trillion, compared with the $1.6 trillion that the administration agrees to. At the moment, the parties have brought their positions closer to $2.2 trillion and $1.8 trillion, respectively.
Months of negotiations between the administration and Democrats on a new emergency economic measures package stalled in late August. To date, the US administration has already allocated more than $6 trillion with Congress’s consent for emergency measures to stimulate economic growth, taking into account the steps taken by the US Federal Reserve.