Senate Republicans Will Back Trump On Stimulus, White House Claims

Senate Republicans will go along with what President Trump wants when it comes to coronavirus relief legislation according to White House Spokeswoman Kayleigh McEnany - which would be in sharp contrast to weekend reports that they had joined House Speaker Nancy Pelosi in opposing the Trump administration's latest stimulus proposal.

"I believe Senate Republicans will ultimately come along with what the president wants - the president noted that yesterday," McEnany told Fox News, adding "We believe Senate Republicans are not what’s blocking this. It is Democrats."

President Trump told Fox News on Sunday that Pelosi is the problem. "Republicans want to do it. We’re having a hard time with Nancy Pelosi," he said.

The news comes as prospects for another fiscal stimulus soured over the weekend, as Democrats rejected a $1.9 trillion proposal brought to the table by Treasury Secretary Steven Mnuchin - the White House's most generous package for the next package.

The package includes approximately $400 billion reallocated from unspent relief legislation passed earlier, bringing the net cost to around $1.5 trillion.

Pelosi, of course, pushed back - writing in a Sunday letter: "This past week, the president demonstrated very clearly that he has not taken the war against the virus seriously, personally or nationally. This attitude is reflected in the grossly inadequate response we finally received from the administration on Saturday. "Until these serious issues are resolved, we remain at an impasse."

Mnuchin and White House Chief of Staff Mark Meadows urged members of Congress to pass "skinny" legislation helping small businesses while they continue to negotiate with Pelosi - something Democrats have generally been opposed to during the entire process.

"We will continue to work with Speaker Pelosi and Senator Schumer," wrote Mnuchin and Meadows. "The all-or-nothing approach is an unacceptable response to the American people."

Democrats, again, pushed back.

Representative Nita Lowey, the Democratic chairwoman of the House Appropriations Committee, rejected the administration’s offer in a statement later on Sunday as “woefully inadequate.”

We can only reopen our economy and set the foundation for a strong recovery if we support state and local governments on the frontline of this crisis,” Lowey said in a statement. -Reuters

On Monday, Trump suggested that Republicans are "giving the Democrats a great deal of time" to "make their self serving statements relative to our great new future Supreme Court Justice," adding "Personally, I would pull back, approve, and go for STIMULUS for the people!!!"

Coronavirus relief negotiations have been a key driver of the markets over the past few months, however according to CMC Markets UK chief analyst Michael Hewson (via MarketWatch), they have been "surprisingly resilient" of late.

"Stock markets have been surprisingly resilient over the last week or so, despite the increasingly diminishing short term prospect of a U.S. stimulus deal, against a backdrop of rising infection rates across Europe, and the rising likelihood of further restrictions," he said in a Monday report, adding "One reason behind recent stock market resilience could be a growing belief that whoever wins next month, with the polls increasingly leaning towards Biden, there will be a sizable fiscal stimulus coming whoever wins, with the only unknown being around the size of any possible package."