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- Senate Majority Leader Mitch McConnell is reportedly leading the stimulus talks while the White House sits.
- President-elect Joe Biden could also jump into Congressional talks as his transition team shifts into high gear.
- Democrats and Republicans are still very distant on the spending levels and content of another economic bailout.
- Visit the Business Insider homepage for more stories.
Senate Majority Leader Mitch McConnell is expected to play a bigger role in coronavirus relief talks as the Trump administration steps aside, the Washington Post reported on Sunday.
President-elect Joe Biden could also embark on negotiations on a new stimulus package in the coming weeks, according to The Post.
Democratic Senator Christopher Coons of Delaware, a backup for Biden, told ABC News on Sunday that Biden “would be able to rally leaders of Congress to bring the relief we need and deserve, and a way the president Trump can show it. The kindness over the next 73 days during the transition is to publicly support a major pandemic relief bill. “
The political dynamic around coronavirus relief could change in the wake of Biden’s election victory over President Donald Trump, who refused to concede. Biden’s transition team is entering talks with Congressional Democrats this week about what priorities to pursue during the lame session, The Post reported.
Coronavirus relief talks between House of Commons Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin crept on for more than a month before the election. They failed to come to an agreement, struggling to agree on overall spending levels and the content of an economic bailout.
Read more: Raymond James Chief Investment Officer explains why Joe Biden and Mitch McConnell are the perfect pair to drive markets higher – and lists 4 sectors he says are ready for gains no matter who is in power
Pelosi and McConnell recently expressed interest in passing a relief bill before the end of the year, but they are way out on their priorities. Democrats pushed for a plan of just over $ 2 trillion, while Republicans objected to spending a significant amount.
McConnell cited the jobs report on Friday that said the economy gained 638,000 jobs in October as a reason to support a slimmer relief plan instead of the more ambitious bill Democrats want.
“I think we need another one, but I think that reinforces the point I’ve been making for a few months that something smaller … is more appropriate, because it’s very targeted towards things that are directly related to the coronavirus, which we all know won’t go away until we get a vaccine, ”he said at a press conference in Kentucky.
The GOP has twice unveiled a $ 500 billion relief plan, and Democrats twice rejected it. The measure omitted direct payments of $ 1,200 to taxpayers and aid for short state and local governments, two key democratic priorities. But McConnell signaled last week that he was open to including funding for states.
Many economists have said additional stimulus spending is needed to support a slowing economic recovery. The latest jobs report marked the fourth consecutive month of slowing job gains, and more than 22 million Americans still clamor for some form of unemployment benefits as the unemployment rate remains high at 6.9 %. These benefits will expire for millions of people at the end of the year without an extension of Congress.
Democrats failed to secure a Senate majority in last week’s election, but are placing their hopes in two second-round races in Georgia in early January. Democrats must win both to achieve a 50-50 draw with Republicans, leaving Vice President-elect Kamala Harris to vote for the tiebreaker.
Read more: A team of Wells Fargo investment strategists who have studied the latest election results explain how to play out exactly the most likely outcome with stocks, bonds, commodities, and tax strategies.
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