The stock market rose at the close of trading on Friday, ending their best week in recent months, as the administration trump’s proposed stimulus package for the economy worth $1.8 trillion., as well as voting on individual provisions. Democrats in the House of representatives rejected these proposals, negotiations are continuing.
Main US stock indexes on Friday closed with growth on expectations of the adoption by Congress of the aid package remained unemployed Americans affected by the pandemic coronavirus industry, medicine, education and other measures.
The Dow Jones rose 0.57% on Friday and ended the week up 3.3%, the S&P 500 rose by 0.88% and 3.8% at the end of the week and the Nasdaq added 1,39% and 4.6%, respectively.
Trump has made concessions
By the end of last week, Donald trump has departed from its rhetoric on Tuesday to stop the negotiations on the aid package for the economy. Instead, the US President urged the House of representatives and the Senate to pass a bill that includes $25 billion in support of payment of salaries to the employees of the airlines and $135 billion for the security Program salaries for small business. The funds can be allocated from unspent funds in accordance with the Law “Cares”.
The white house also raised the amount of the proposed aid package to $1.8 trillion. what is a figure between us $2.2 trillion. which insisted the Democrats and $1.6 trillion. called for by the Republicans.
In conversation with the leading talk shows on the radio rush Limbaugh, trump said he “frankly would like to see a larger stimulus package than that offered by the Democrats or Republicans.”
Because Republicans and Democrats have many differences, but the negotiations dragged on for several months, the Minister of Finance Steven Mnuchin and White house chief of staff mark meadows in his letter to Congress on Sunday called for a separate vote on the Program to protect the wages and permanent loans for small businesses.
The resistance of the Democrats “inadequate” proposal the White house
But the Democrats of the house of representatives is not compromised. The speaker of the house of representatives Nancy Pelosi has called the administration’s proposal trump “highly inappropriate”, and health care costs in a pandemic is “completely insufficient.”
“This proposal is one step forward, two steps back,” said speaker Pelosi. “When the President says that he wants a larger aid package, his proposal seems to indicate that he wants to dispose of a lot of money at their own discretion, instead, to align the wording prescribing how we respect our employees, suppressed the pandemic and put money in the pockets of workers.”
“The approach “all or nothing” is not an acceptable answer to the American people”
Mnuchin and meadows in response to the refusal of the house of representatives said: “It’s time for us to come together and immediately vote for a bill allowing us to spend unused funds protection Program salaries while we continue working on the comprehensive package”.
“The approach “all or nothing” is not an acceptable response to the American people,” they wrote.
The fed Chairman Jerome Powell and the head of the Minneapolis fed urged lawmakers to adopt measures to further stimulate the economy to push the economy to recovery, after the pace of recovery has slowed, as evidenced by indicators of the labour market.
While Democrats and Republicans remain deadlocked on legislation about incentives, stock market experts predict a further high volatility in the financial markets that also affected the upcoming elections in the United States.
“Talk about incentives do not dictate the behavior of the market on a daily basis, said Kate Buchanan, portfolio Manager at GLOBALT.
Buchanan noted that the recent rhetoric indicates some progress in negotiations, but added that for Washington it is important to act quickly in this matter to “reduce the pressure under which the economy”.
“The periodic nature of the discussion of fiscal stimulus in the US is unlikely to inspire lasting trust,” said Mizuho Bank. “Uncertainty around the presidential elections of 3 November are likely to persist not only until election day, but possibly after him.”