As House Returns to Session, Window Opens for New Aid Deal, But Only a Crack

Chris Gaetano
Published Date:
Sep 14, 2020
While the House's return to session this week means that theoretically a new pandemic aid deal could be reached, Bloomberg is saying that the chances remain slim, as priority  is being placed instead on the continuing resolution that will keep the government funded. While Senate Republicans had attempted to pass a stripped-down "skinny bill" last week, it was dead on arrival without support from the Democrats. With House members returned, meanwhile, Democrats will aim to try to wring additional concessions from Republicans, confident that their majority will be safe in the upcoming elections.

While the White House is unlikely to fully approved the $2 trillion that the Democrats would like in a deal, CNBC said that it has shown a willingness to take at least some steps toward compromise. Treasury Secretary Steve Mnuchin chastised his fellow Republicans for their concern about the budget deficit, saying that now is not the time for such reservations and noting that  the economy still has plenty of room to maneuver.

In this respect, he echoed comments made by Federal Reserve Chair Jerome Powell, who said in April that he is sympathetic to concerns that a deficit path is unsustainable, as he himself has spent years arguing the same thing. But he said that this was not the time to be having such a debate, as the bigger priority is to address the pandemic.

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