Trump baffles Wall Street by halting stimulus talks
US President Donald Trump put an end to months of negotiations between Democrats and Republicans on a new stimulus package until after the election, surprising both Wall Street and Washington.
The move - or tweet - came just hours after US Federal Reserve Chairman Jerome Powell highlighted the need for more fiscal spending to help the economic recovery. Stock markets immediately tumbled on the news but have pulled back slightly overnight in Asia.
The Democrats had tabled a $2.2 trillion stimulus package which failed to get Republican support in the house. So far, the White House has put forward a $1.6 trillion package. Recent economic data has suggested a large stimulus package is needed as some states struggle with new lockdowns.
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Many analysts have said this move was 'illogical' so close to the election and that now the vote will be down to whether a citizen wants a large stimulus package from the Democrats or austerity from the Republicans. With the election creeping ever close it's a very interesting time!
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Source: Admiral Markets MetaTrader 5 Web, SP500, Weekly - Data range: April 27, 2014, to October 7, 2020, performed on October 7, 2020, at 7:09 am BST. Please note: Past performance is not a reliable indicator of future results.
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