US President Donald Trump issued a call for negotiators to “work together” and close a deal on new fiscal stimulus for the US economy a month before the November elections.

The appeal came from Mr Trump’s Twitter account while the president was in office Treats from Coronavirus At a military hospital in Maryland, in an effort to stimulate talks on an economic relief package between his administration and Democrats in Congress.

Steven Mnuchin, the US Treasury Secretary, and Nancy Pelosi, the Democratic Speaker of the House of Representatives, are leading the negotiations and have been engaged in intense talks over the past few days.

Pelosi suggested Friday that the US president’s diagnosis, in highlighting the severity of the disease, could help create the conditions for a compromise.

“The great USA wants and spurs needs. Work together and get it done. Thank you so much!,” Trump tweeted on Saturday.

We have to be serious about this

In an interview with CBS Sunday morning, Pelosi said she was “making progress” in the talks. But she refused to say whether the agreement was closer than it was late last week, and indicated that the outcome may depend on whether the Trump administration has provided more money for testing and tracing.

“We want to see that they will agree on what we need to do to crush the virus so we can open the economy and open our schools safely,” Pelosi said. “We have to be serious about this.”

She repeated her appeal to airline executives to refrain from moving forward Thousands of jobs will be cut On the grounds that “relief is on the way” and will be “retroactive”.

Democrats in Congress argue that the US economy needs broad government assistance to keep families, businesses and local governments faltering, as the $ 3 trillion relief effect fades away at the start of the pandemic.

In May, the Democratic-controlled House of Representatives passed a $ 3 trillion bill in additional financial support, and on Thursday they approved An abbreviated version of $ 2.2 trillion. But both have been dismissed by the White House and Republicans in Congress as excessive.

Some White House advisers, including Larry Kudlow, president of the National Economic Council, have argued that the US recovery is on a path of self-sufficiency and no longer needs more federal aid.

But other senior Trump administration officials, particularly Mr Mnuchin, have emphasized that some additional help is needed for the US economy to bolster its recovery. A clear slowdown in job growth It is heading to the fourth quarter.

To further complicate the dynamic, the Republicans in Congress, especially in the Senate, have refrained from any additional spending exceeding a trillion dollars, leaving a large gap between them and the Democratic position.

Mr Trump has been at times vague about how far he wants to reach a settlement and strike a deal with Pelosi, but recently urged Republican lawmakers to accept higher numbers for a new round of stimulus.

The Trump administration’s latest proposal, submitted last week to Pelosi, called for $ 1.6 trillion in additional relief. But the Speaker of Parliament said it was still insufficient on several fronts, including funding unemployment benefits, tax breaks for poor families, state governments, and testing and tracing the coronavirus.

If an agreement is reached in the coming days, it will likely be welcomed by Fed officials, including Jay Powell, the president, who have warned against it. The recovery will be weaker and longer In the absence of a new incentive.

According to Politico, Powell discussed aspects of stimulus legislation in a private call with Mr. Mnuchin and Mrs. Pelosi last week. The Federal Reserve, Treasury and the spokesperson’s office did not respond to requests for comment on the conversation.

Business groups that have been lobbying for an agreement will also be relieved if a compromise is reached. But any deal could still face significant hurdles in getting approved by the Republican-controlled Senate, given their doubts about a new relief package.

There could be logistical challenges as well. The Senate has now postponed any ground measures, including the final vote, until October 19, after several Republican senators tested positive for the coronavirus.

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