Trump Takes to Twitter to Undermine Covid Relief Bill
After enduring a tough start to the week, amid fears of a new strain of coronavirus, the US equity markets bounced back after a $900 billion Covid relief bill sped through both Congress and the Senate, receiving little opposition.
Late on Tuesday, however, US President Donald Trump took to Twitter, uploading a 4-minute video calling the bill a “disgrace”. He bemoaned the “ridiculously low” stimulus cheques of $600 to US citizens, arguing that this figure should be amended to $2,000 or $4,000 for couples.
His unexpected outburst made demands which his own party had opposed during the cross-party negotiations.
The House Speaker, Democrat Nancy Pelosi, quickly took to Twitter to respond to Trump’s demands for higher stimulus cheques for US citizens, saying “Let’s do it!”
The S&P 500 experienced a sharp drop which coincided with Trump’s announcement, however, it has since recovered.
If this results in further debate and a delay in the stimulus package, we will most likely see more volatility in the US equities market in the coming days. If, however, this results in a larger package, we can expect to see a positive effect on the stock market but further USD weakness.
It is important to note that, whilst Trump did not explicitly threaten to veto the bill, even if he did decide to take this step, the vote totals in both houses were sufficiently high to override a veto.
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