Trump "Suspends Stimulus Package Negotiations"... New York Stock Market Plummets (Comprehensive)

Reveals Order to Halt Negotiations Before Presidential Election... Focus on Federal Supreme Court Justice Confirmation
Fed Chair Warns of Economic Downturn

[Asia Economy New York=Correspondent Baek Jong-min] U.S. President Donald Trump has declared a halt to negotiations on the stimulus bill. Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), warned that the economy could plunge without additional support measures. The New York stock market, which had been closely watching the bill's progress, sharply reversed and fell.

[Image source=AP Yonhap News]

On the afternoon of the 6th (local time), President Trump announced via Twitter that he had instructed to suspend negotiations with the Democrats on the stimulus bill until the November election.

President Trump stated, "I have instructed to halt negotiations until the election, and as soon as I win, I will pass a support bill for workers and small businesses."

He claimed, "Nancy Pelosi demanded a $2.4 trillion stimulus bill to support states run by Democratic governors unrelated to COVID-19. We generously offered $1.6 trillion, but as always, she did not negotiate in good faith."

President Trump continued, "Our economy is still strong, and the stock market is at record levels. Jobs and unemployment rates will return to record levels. We are leading the global economic recovery. The best is yet to come," expressing that passing the stimulus bill is not urgent.

This was a reversal from initial expectations. Earlier that day, he was reported to have discussed the stimulus bill negotiations during a phone call with Republican lawmakers, raising hopes for an agreement. President Trump had also previously mentioned the need for a stimulus bill agreement even while hospitalized.

President Trump also revealed that instead of focusing on the stimulus bill negotiations, he demanded all efforts be concentrated on confirming the federal Supreme Court nominee. He emphasized, "I asked Senate Majority Leader Mitch McConnell to focus all efforts on confirming Amy Coney Barrett as a federal Supreme Court justice."

This is interpreted as a clear stance to prioritize the confirmation of the federal Supreme Court justice over reaching a stimulus bill agreement with the Democrats ahead of the election.

Contrary to President Trump's position, Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), warned during a speech at the National Association for Business Economics annual meeting that the U.S. economy still has a long way to go and that the economy could plunge if additional support measures are not implemented.

Chairman Powell said, "At this point, the risks of excessive stimulus are much lower," adding, "Even if we implement more policies than actually needed, it is never in vain."

He argued that insufficient stimulus is more dangerous. He explained, "Insufficient support does not significantly aid economic recovery and causes unnecessary economic hardship for American households and businesses."

Meanwhile, the New York stock market sharply reversed and closed down following President Trump's remarks. The Dow Jones Industrial Average fell 1.34%, the S&P 500 dropped 1.4%, and the Nasdaq index declined 1.57%.

International oil prices, which had risen nearly 5% on hopes for a stimulus bill agreement, also ended with gains limited to the 1% range.

This content was produced with the assistance of AI translation services.