McConnell Urges White House Not to Strike Stimulus Deal With Democrats Before Election

By Mary Anne R. Oct 21 2020, 03:05 AM EDT

Senate Majority Leader Mitch McConnell told his fellow Republicans that he urged the White House not to enter a stimulus package deal with Democrats.

This was according to a Senate source who spoke on the condition of anonymity to discuss closed-door discussions, as per a USA Today report.

McConnell voiced out concerns that there would not be enough Republican votes to back a stimulus package. He added that voting on such legislation could negatively affect the timing of Judge Amy Coney Barrett's confirmation vote.

McConnell's opinion comes after a disagreement among Republicans about the size and details of a stimulus package. Some GOP members said the stimulus package is too costly and will add to the federal deficit.

President Donald Trump has urged Republicans to suggest an even higher price tag than Democrats. Republicans in the Senate are set to propose a $500 billion plan on Wednesday.

This stimulus package includes funds for small business loans, a federal boost to unemployment benefits, a $100 billion budget to schools, and funding for testing and vaccine development.

It is lower compared to the previous $1.8 trillion offered by the White House earlier this month and the $2.2 trillion stimulus package proposed by Democrats.

Pelosi and Mnuchin

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are still negotiating.

Pelosi and Mnuchin talked by phone on Tuesday. Pelosi spokesperson Drew Hammill said that the conversation provided more clarity and common ground.

They plan to speak more on Wednesday. Pelosi did not meet her own 48-hour deadline. This deadline calls for the two sides to reach a deal by Tuesday if they wanted relief by Election Day.

"We could still continue the negotiations. It might not be finished by Election Day," Pelosi said in a report.

Paycheck Protection Program

Most Democrats voted against a stand-alone coronavirus relief bill to restart the Paycheck Protection Program (PPP).

Even if the stand-alone PPP bill eventually passes in the Senate, it would not be likely be passed through the Democrat-controlled House of Representatives.

According to a Forbes report, Senate Democrats argued that the PPP extension bill would be insufficient to address the needs of the economy.

Senator Ben Cardin (D-Md.) said that everyone knows, including the Republican Leader, that they will pass the bill that is currently before the Senate.

Why are we taking these issues up? One simple answer: political cover votes," Cardin noted in a report.

U.S. Stocks Rising

Meanwhile, United States stocks are rising even as lawmakers remained unable to reach a fresh aid package to improve the current economic situation.

The S&P 500 bounced back from Monday's selloff. A rally built on stimulus hopes has investors measuring Pelosi's deadline.

Federal Reserve policymakers urge for more fiscal support. John Normand, head of cross-asset fundamental strategy at JPMorgan Chase & Co, said the behavior of markets shows optimism that there will be a big stimulus by January.