Pelosi 'Hopeful' on Stimulus Deal But White House Offer Falls Short

U.S. House Speaker Nancy Pelosi said there are still major differences to be bridged in the negotiations over a fiscal stimulus package with Treasury Secretary Steven Mnuchin.

Speaking in an interview on Bloomberg TV, Pelosi said she will not simply accept whatever the White House offers, just to get a deal done.

“This isn’t half a loaf. What they’re offering is the heel of the loaf,” Pelosi said. “It’s no use going into a negotiation just saying you’ll take the path of least resistance.”

Talks between Pelosi and Mnuchin continue with a 1 p.m. call today, but the speaker expressed skepticism to her colleagues earlier Thursday of the chances of a deal. The two met for about 90 minutes Wednesday without coming to an agreement, although Mnuchin said progress was made.

At a morning news conference, 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.

When asked if President Donald Trump would personally step in to participate in the negotiations, White House Press Secretary Kayleigh McEnany said the administration has offered a “good proposal” that compromised on spending levels, but said Democrats are still seeking unacceptable provisions.

“First I would say Nancy Pelosi is not being serious,” McEnany said Thursday. “If she becomes serious then we can have a discussion here.”

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 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.

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