In Washington, politicians slowly make progress toward a stimulus deal. Meanwhile, they pound the table and accuse the other side of being unreasonable. Nevertheless, there are negotiations concerning the next stimulus package.
Thus, last week, the two sides moved $500 billion closer to a deal.
Last, there was big news on a stimulus package. There was a telephone call between the White House Chief of Staff Mark Meadows and House Speaker Nancy Pelosi (D-CA). Both sides offered little hope, following the 25-minute call. Speaker Pelosi said that the parties were at a ‘tragic impasse.’
Mister Meadows said that stalled negotiations were because of the Speaker Pelosi’s “fantasy objections”. Moreover, he said that she would not explain what her offer would fund.
However, move past the sound bites, and one can see real progress toward a deal. Remember that the starting positions were $3.4 trillion in the Heroes Act. House Democrats passed the Heroes Act. Furthermore, Senate Republicans introduced $1 trillion in the HEALS Act. Speaker Pelosi offered to come down to $2.4 trillion if Republicans would come up to $2 trillion. It happened during negotiations in early August. Nevertheless, that offer was rejected.
Republicans offered to come up with specific issues at the same time. The problems include aid to local and state governments and unemployment benefits. Nevertheless, Democrats rejected this proposal.
However, following the call last week, Speaker Pelosi reduced her proposal by $200 billion. It is down to $2.2 trillion.
The Next Stimulus Package
Speaker Pelosi said to reported that they have said again and again that they are willing to come down and meet them in the middle. Thus, it would be $2.2 trillion. When they are ready to do that, they will be ready to negotiate and discuss. Nevertheless, Pelosi did not get that impression on that call.
Mister Meadows came up $300 billion, simultaneously. He said that President would sign a $1.3 trillion package. Thus, Meadows said that the President right now wants to sign something at $1.3 trillion. That is what Meadows told reporters. Moreover, he said that number had been offered to Democrats.
Both sides are waging a war of words. Nevertheless, last week, they did make meaningful progress toward a deal.
$500 billion is significant progress. Nevertheless, there is one critical disagreement concerning how to approach further negotiations. Republicans want to negotiate and evaluate each substantial piece of the stimulus package. That was evident in past talks. During that negotiations, Republican negotiators made offers on specific parts of the legislation, such as local and state government funding and unemployment benefits.
Democrats will focus on the top-line number. They want to reach an agreement concerning the total cost of the package. Later, they want to fill in the details. That was evident in their offer with compromise on the overall value of the next package of the stimulus.
This week, the different negotiating strategies bubbled to the surface. Mister Meadows said as much in an interview following his call with the Speaker.
That is the situation over the negotiations in the United States.
- Trading Instrument