President Donald Trump said he would consider alternative aid measures such as a new round of stimulus checks, support for airlines and the Paycheck Protection Program, a day after halting stimulus talks until after the presidential election.
House Speaker Nancy Pelosi said she was open to a standalone airline relief bill in a telephone conversation with Treasury Secretary Steven Mnuchin on Wednesday, Bloomberg reported, after Trump said Tuesday he would pull his negotiators from broader stimulus talks.
Trump’s announcement over Twitter followed the urging by Federal Reserve Chairman Jerome Powell for Congress to provide more fiscal support since a U.S. recovery would be weak without additional aid from the government.
Later Tuesday, however, the president tweeted that he would be willing to pass relief measures such as a new round of $1,200 stimulus checks.
“If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY. I am ready to sign right now. Are you listening Nancy?” Trump tweeted.
In addition to the aid for airlines, Trump said Congress should approve $135 billion for the Paycheck Protection Program to help small businesses.
Airline stocks dropped sharply Tuesday after Trump tweeted that the Senate would no longer consider the $2.2 trillion stimulus bill proposed by House Democrats, dashing hopes for airlines that they might be able to hold off large-scale furloughs and layoffs.
Airlines had been barred from furloughing or laying off workers until Oct. 1, under the terms of the previous $25 billion in federal aid they received earlier this year.
But they recovered on Wednesday, with all of the major airlines posting gains, after Trump said he would still sign off on fiscal stimulus that would also include an additional $25 billion to help support the airline industry, which continues to bear the brunt of the pandemic and dramatic drop in business and leisure travel.
Jim Cramer weighs in on the back and forth on a stimulus package and targeted stimulus and what investors should watch.
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