White House economic adviser Larry Kudlow said on CNN’s “State of the Union” Sunday that President Trump may propose a coronavirus stimulus package with an even larger price tag than the $2.2 trillion legislation that House Speaker Nancy Pelosi has offered.
Why it matters: It’s highly unlikely that a bill in the neighborhood of $2 trillion, let alone more than that, would win the support of Senate Republicans. Senate Majority Leader Mitch McConnell said Friday that a stimulus deal is “unlikely” before the election.
The state of play: After calling off the negotiations via tweet last week, Trump has now raised his offer to $1.8 trillion, spooked by the market reaction to his move and desperate to inject stimulus into the economy before the election.
- Pelosi said the proposal was “one step forward, two steps back,” accusing the administration of failing to include public health measures in the package that would help “crush the virus.”
What they’re saying: “Secretary Mnuchin is up to $1.8 trillion. So the bid and the offer is narrowing somewhat between the two sides,” Kudlow said.
- “President Trump actually has always said — I’ve heard him say it in the Oval — as far as the key elements are concerned, the checks, the unemployment assistance, the small business assistance, we gotta help airlines out — he would go further. He’s always said that.”
- “He knows that we need as much power for economic recovery as possible. It’s not just recovery in three weeks. It’s recovery to the end of the year and beyond in a possible second term. So I think Secretary Mnuchin is a very good negotiator and will be carrying the president’s message.”
Go deeper: Trump tells House GOP leader he wants a “big deal” on COVID relief