Trump Pushes For Coronavirus Economic Relief As White House, Democrats Negotiate

Update: 12:40p.m. EDT

President Trump is expected to declare a national emergency at his 3 p.m. EDT news conference. The action will open the way for more national aid to states.

Original story

President Trump on Friday pushed for lower interest rates and quick approval of a payroll tax cut to try to limit economic damage from the spreading coronavirus infection that has roiled stocks and disrupted normal life across the United States and the world.

The number of U.S. infections grew to at least 1,700 with 41 deaths as schools were closed, entertainment venues shuttered and sports events called off – the latest the Masters Tournament in Atlanta. Store shelves were emptying – especially of toilet paper -- as panicked Americans stocked up in fear of quarantine.

“If you want to get money into the hands of the people quickly and efficiently, let them have a payroll tax cut until the end of the year,” Trump tweeted.

He also resumed his drum beat for negative interest rates.

The Federal Open Markets Committee meets next week and could take action. It already has lowered interest rates a half-point in response to the outbreak and injected $1.5 trillion of liquidity into the economy.

Trump's Oval Office address Wednesday failed to reassure Americans. The president planned to try again Friday, scheduling a 3 p.m. EDT news conference and tried to defend his administration's performance thus far, touting his border policy as a key action to prevent spread of the disease.

The tweets came as House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin were putting the finishing touches on a coronavirus relief package.

“We have, or are near, to an agreement, subject to the exchange of paper,” Pelosi told reporters following a Democratic leadership meeting.

“We’re close to a deal. Obviously, it takes time to write it up, make sure it’s right, make sure it’s comfortable,” House Majority Leader Steny Hoyer told Politico. “Hopefully, hopefully, we will have it done by [Friday].”

Pelosi said she expected a vote on the legislation Friday following hours of negotiations with Mnuchin. The two have been at odds over provisions, with Democrats objecting to Republican language that would have explicitly prohibited the use of federal funds for abortion services.

“We felt that putting together something that the American people would see some cooperation on between the two parties at this moment would be a confidence builder,” Ways and Means Chairman Richard Neal, D-Mass., one of the key negotiators, told reporters.

The multibillion-dollar bill shores up the safety net, providing funds for food aid and expanded unemployment insurance, as well as free testing for COVID-19, the lung disease caused by the virus.

Republicans have raised strong objections to Democrats’ proposed 14-day sick leave provision and a refundable tax credit for companies with fewer than 501 employees.

Senate Majority Leader Mitch McConnell canceled next week’s recess to deal with the outbreak.