Update: In response to Trump's breaking off stimulus talks, Pelosi unloaded on President:
Today, once again, President Trump showed his true colors: putting himself first at the expense of the country, with the full complicity of the GOP Members of Congress.
Walking away from coronavirus talks demonstrates that President Trump is unwilling to crush the virus, as is required by the Heroes Act. He shows his contempt for science, his disdain for our heroes.
Clearly, the White House is in complete disarray. Sadly, they are rejecting the urgent warnings of Fed Chairman Powell today, that ‘Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses. Over time, household insolvencies and business bankruptcies would rise, harming the productive capacity of the economy and holding back wage growth. By contrast, the risks of overdoing it seem, for now, to be smaller.
Her full statement below:
* * *
We have been warning for weeks that no stimulus deal would happen before the election, and moments ago none other than president Trump confirmed just that.
Trump, who has been in the White House less than a day since his return from Walter Reed, just crashed stocks, bond yields and sent the dollar soaring, when he tweeted that due to Nancy Pelosi's "bad faith" negotiations, he has instructed representatives "to stop negotiating until after the election" and instead to focus on approving Amy Coney Barrett to the Supreme Court.
The full Trump tweetstorm:
Nancy Pelosi is asking for $2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19.
We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith.
I am rejecting their request, and looking to the future of our Country. I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business.
I have asked Mitch McConnell not to delay, but to instead focus full time on approving my outstanding nominee to the United States Supreme Court, Amy Coney Barrett.
Our Economy is doing very well. The Stock Market is at record levels, JOBS and unemployment also coming back in record numbers. We are leading the World in Economic Recovery, and THE BEST IS YET TO COME!
...request, and looking to the future of our Country. I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business. I have asked...— Donald J. Trump (@realDonaldTrump) October 6, 2020
...also coming back in record numbers. We are leading the World in Economic Recovery, and THE BEST IS YET TO COME!— Donald J. Trump (@realDonaldTrump) October 6, 2020
Which is rather odd considering that just 3 weeks ago Trump advised McConnell and all Republicans to "go for the much higher numbers, Republicans, it all comes back to the USA anyway (one way or another!)."
Democrats are “heartless”. They don’t want to give STIMULUS PAYMENTS to people who desperately need the money, and whose fault it was NOT that the plague came in from China. Go for the much higher numbers, Republicans, it all comes back to the USA anyway (one way or another!).— Donald J. Trump (@realDonaldTrump) September 16, 2020
Guess something changed in the meantime...
And speaking of the stock market being at record levels, well not so much as algos were clearly stunned by this unexpected development ending all hopes for a stimulus deal before the election, with risk assets plunging...
... yields tumbled...
... and the dollar soared.