LIVE: Pelosi Holds News Conference Amid Diminishing Hopes of a New Stimulus Deal

U.S. House Speaker Nancy Pelosi told top Democrats Thursday that she’s skeptical of getting a deal for a new economic stimulus in negotiations with Treasury Secretary Steven Mnuchin, according to two House Democratic officials.

Pelosi spoke with her leadership team on a conference call before the next scheduled round of talks with Mnuchin. The two met for about 90 minutes Wednesday without coming to an agreement, but Mnuchin said progress was made.

At a news conference after the call, Pelosi said the two sides are still far apart on the total amount of stimulus and how it would be apportioned. Many of the same sticking points that have resulted in the current stalemate, including aid to state and local government, remain.

“We’re hopeful we can reach agreement because the needs of the American people are so great,” Pelosi said. “But there has to be a recognition it takes money to do that.”

Both sides face increased pressure to act as more companies announce job cuts, including airlines that had received help under earlier rounds of federal support, and there is little time to act before the Nov. 3 election.

The S&P 500 Index pared its advance by more than half after Pelosi’s skepticism was reported. U.S. stock markets have been whipsawed this week by speculation over whether a stimulus deal can be reached.

House Democrats proposed a $2.2 trillion stimulus package that Pelosi described as a “proffer” in negotiations with the White House. Republican congressional leaders have rejected it.

Mnuchin said President Donald Trump instructed his negotiators “to come up significantly” from the initial GOP proposal of a $1 trillion pandemic relief plan.

They offered Pelosi a maximum of $1.6 trillion, some of which is covered by unused small business relief funds, according to people familiar with the proposal. That would include $400 a week in additional unemployment insurance, less than the $600 the Democrats want, the people said, but more than the $300 the White House put forward earlier. The package would also provide $250 billion in assistance to state and local governments, $100 billion more than a previous White House offer, but not as much as Democrats say is needed.

“I think that the president made a very good and generous offer that addresses most if not all — the vast majority of issues,” White House Chief of Staff Mark Meadows told reporters Wednesday night. “And yet we’re still apart on money and the priorities for that allocation. Discussions will continue.”

Meadows said the Trump administration’s counterproposal was “certainly above the $1.5 trillion that has been articulated to date,” but that “if it starts with a two, there’s going to be a real problem.”

House Democrats are still planning a vote on their $2.2 trillion proposal. It’s less than the $3.4 trillion bill the House passed in May, but still more than Republicans have said they could accept. Senate Majority Leader Mitch McConnell said Wednesday that it was rife with “poison pills” that have nothing to do with pandemic relief.

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