Trump vs. Democrats: Stimulus Package In Serious Jeopardy After President Tweets End To Negotiations

Update 7:15 p.m. EDT

Democratic presidential nominee Joe Biden said President Donald Trump "turned his back" on small businesses, schools, first responders and others by ending the stimulus talks.

"Worse yet, he never even really tried to get a deal for these Americans. Not once did he bring Republicans and Democrats together in the Oval Office, on the phone, or by Zoom, to get a relief package that would help working people and small businesses in this country. Not once in the months since the House passed a relief package in May has he stepped up to lead," Biden said in a statement.

Original story

President Trump on Tuesday broke off talks with Democrats on the next round of coronavirus stimulus, tweeting he was rejecting demands by House Speaker Nancy Pelosi to provide funds to state and local governments that bore the brunt of costs for the coronavirus pandemic.

Stocks plummeted after Trump's announcement with the Dow closing down 1.3%, or 376 points. The S&P 500 fell 1.4%, and the Nasdaq Composite dropped 1.6%.

Trump insisted the economy is coming back without further action despite a plea earlier in the day from Federal Reserve Chairman Jerome Powell for decisive action from Congress to prevent the economy from spiraling downward.

"Nancy Pelosi is asking for $2.4 trillion to bail out poorly run, high crime, Democrat states, money that is in no way related to COVID-19," Trump tweeted. "We made a very generous offer of $1.6 trillion and, as usual, she is not negotiating in good faith."

Trump said he is "rejecting" Pelosi's offer and thee would be no new talks until after the Nov. 3 election.

Trump said he'd rather see the senate concentrate on confirming Amy Coney Barrett to the Supreme Court to cement a 6-3 conservative majority.

Pelosi, in a letter to Democrats, accused the president of damaging "lives, livelihoods and the life of our democracy" by walking away from the talks.

"Today, once again, President Trump showed his true colors: putting himself first at the expense of the country, with the full complicity of the GOP members of Congress." she said.

In a companion press release, Pelosi said the White House clearly is in "complete disarray" and echoed Powell's remarks that lack of action will "lead to a weak recovery, creating unnecessary hardship."

House Democrats approved a $2.2 trillion package last week that included funds for not only state and local governments, but for stimulus checks to all Americans, along with funds for schools and small businesses, and supplemental unemployment benefits, among other allocations.

Pelosi told Democrats late Monday that talks witht he White House were proceeding very slowly. She earlier expressed pessimism about a deal.

Powell told a virtual meeting of the National Association of Business Economics the economy "is clearly out of the woods.”

The Labor Department last week reported the September unemployment rate at 7.9% but job creation failed to meet expectations, indicating the recovery is slowing. The Fed has predicted high unemployment beyond next year without stimulus action.

Trump's tweetstorm comes as he continues recovering from COVID-19. He is taking the powerful steroid dexamethasone, whose side effects include aggression, irritability and trouble thinking.

FiveThirtyEight editor-in-chief Frank Luntz said Trump's action could have major implications for the election.