1 min read.Updated: 09 Oct 2020, 10:03 PM ISTBloomberg
The top White House economic adviser, Larry Kudlow, said that Trump had approved a revised economic stimulus offer
US stocks jumped after Kudlow’s remarks
The White House is increasing its fiscal-stimulus offer to congressional Democrats to $1.8 trillion, according to three people familiar with the matter, three days after President Donald Trump pulled his team from negotiations.
The top White House economic adviser, Larry Kudlow, said that Trump had approved a revised economic stimulus offer, and that Treasury Secretary Steven Mnuchin would be discussing the plan with House Speaker Nancy Pelosi later Friday afternoon.
It’s unclear whether Democrats, who passed a $2.2 trillion package in the House last week, will accept the new offer. Senate Republican leader Mitch McConnell said earlier Friday that political partisanship in the run-up to the Nov. 3 election would likely inhibit a deal in the next three weeks.
Stocks jumped after Kudlow’s remarks, with the S&P 500 Index up 0.9% as of 12:20 p.m. New York time. They had tumbled on Tuesday in the wake of Trump pulling his negotiators, saying that Pelosi had been negotiating in bad faith.
“The president has approved a revised package. He would like to do a deal," Kudlow said Friday on Fox Business. “It will be relatively broad-based but I can’t go through details."
The White House had previously favored a $1.6 trillion package, and denegrated Democrats’ push for large-scale aid to state and local authorities as a bailout for poorly run blue states.
“We have time set aside to speak today. We are anticipating some answers to questions we have, and we respond to some of the questions they have," Pelosi said during an appearance on MSNBC earlier. “The devil and the angels are in the details," she said. “So part of it is about money. And part of it is about policy."