Stimulus Talks Flop / Consumer Prices Moderate
Time is running out for additional stimulus before the election. Senate Majority Leader McConnell had proposed a single item PPP replenishment bill which House Majority Leader Pelosi called a nonstarter late this morning. Even President Trump dismissed McConnell’s skinny effort, tweeting “Go big or go home!!” This came just a week after the president had instructed his representatives to halt negotiations until after the election. The most recent proposal by the Democrats totals $2.2 trillion, while the administration raised its proposal from $1.6 trillion to $1.8 trillion, and GOP leaders have suddenly re-embraced fiscal conservativeness. It’s still possible a deal gets done in the coming weeks as leaders on both sides recognize the economy is poised to slow in the fourth quarter. But tempers are flaring, and any action (or lack of action) will have to be weighed against the political implications.