Trump torpedos stimulus talks
US stocks are expected to recover some of Tuesday’s losses, which came as President Trump called off stimulus talks with the Democrats.
The jolt in the markets was short-lived, with Trump later suggesting that a less abitious collection of short-term measures would be preferable, which would tie the US over until after the election.
While not ideal, the measures would shore up investor confidence and provide a temporary buffer with businesses and households, but I’m not sure the Democrats will back a piecemeal approach.
Of course, this could all be an elaborate attempt to draw more concessions from the Democrats and bring them closer to the $1.5 trillion package that the Republican’s are pushing for.
I’m not sure it will work though; in doing what he has, the President has, willingly or accidentally, allowed the finger of blame to be pointed his way, regardless of whether the breakdown is actually his fault or if it was just heading that way, anyway.
With only weeks to go until the election and the polls significantly favouring Biden, the President may also just be taking bigger gambles in an attempt to swing them back in his favour late in the day. Which should make the coming weeks more interesting as he looks to close the gap and secure the second term that, this time last year, looked a foregone conclusion.
In the midst of all of this, it’s almost easy to forget that the vice-Presidential debate takes place on Wednesday. Ordinarily, this wouldn’t really be viewed as such a major event, but these are far from normal times.
Given Trump’s health and the likelihood of Biden being a one-term President, this takes on much more added importance. The Fed minutes will also be of interest but under the circumstances, perhaps less so than normal.
For a look at all of today’s economic events, check out our economic calendar.
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