Financial markets plunged yesterday in the biggest one-day drop since the Black Monday stock market crash of 1987, and Congress neared a deal with the White House on a sweeping economic rescue package to respond to the colossal effect of the coronavirus pandemic, the New York Times reported. After a day of intense negotiations between Speaker Nancy Pelosi of California and the Treasury secretary, Steven Mnuchin, Pelosi told reporters that “we’ve resolved most of our differences” and the House would vote today on the measure “one way or another.” It would then go to the Senate, which called off a recess that had been scheduled for next week in anticipation of a compromise. The legislation, according to a letter sent to her members, will include enhanced unemployment benefits, free virus testing, aid for food assistance programs and federal funds for Medicaid. The package also ensures 14 days of paid sick leave, as well as tax credits to help small- and medium-size businesses fulfill that mandate. Language was still being drafted for provisions related to family and medical leave, according to a Democratic aide, as staff members worked through the night to prepare the bill. Read more.
In related news, President Donald Trump’s top aides are racing to design a wide-ranging government rescue of major sectors of the economy — such as airlines, hospitality and other service industries — amid a collapsing stock market and cascading shutdowns of major sports events, Broadway shows, museums and amusement parks, Politico reported. Behind the scenes, the Treasury Department and top economic officials are exploring ways to help out industries struggling financially from a rapid shutdown. They’re leaning toward some type of tax relief or deferring tax payments to provide an initial cushion — hoping to avoid a full-fledged bailout akin to the 2008 banking rescue that could prove difficult to clear past the Republican base. The discussions about saving U.S. businesses are separate from an ongoing debate among lawmakers and Trump officials about a stimulus program that would directly aid American workers. Read more.
