WASHINGTON: US policymakers continued to hold talks Monday on a new spending package to aid the virus-hit economy, but the negotiations have lost momentum, dimming hopes that an agreement can be reached before the November 3 election.
With Covid-19 cases on the rise nationwide, the need for stimulus has taken on a new urgency, especially as many support programs have expired or are about to, including a moratorium on foreclosures and evictions as well as loans for small businesses, which threatens to spark a wave of bankruptcies and homelessness.
"The talks have certainly slowed down, but they're not ending," White House economic adviser Larry Kudlow said Monday on CNBC. After months of negotiations between Treasury Secretary Steven Mnuchin and Democratic House Speaker Nancy Pelosi, time has nearly run out to get stimulus approved before President Donald Trump stands for re-election next week.
Whether a measure can be approved in the "lame duck" session before the new Congress is seated in January is unclear.
"We're close, but there are still important policy issues that separate us and our team believes there have to be more compromises on the House side for us to get there," Kudlow said. A source familiar with the discussions told AFP AFP Pelosi and Mnuchin will speak by telephone at 1800 GMT.
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