airline

White House lurches in new direction on stimulus talks, pushing for airline aid

The newest twist in the talks appears to be fast-tracking negotiations to aid the airline industry but shelving the prospects broader unemployment aid, another round of $1,200 relief checks to millions of Americans, small business assistance, and a number of other programs.

Still, after sinking on Tuesday, the stock market rallied sharply Wednesday on the prospect of a partial deal. The Dow Jones industrial average closed up more than 500 points, or nearly 2 percent. Airline stocks fared even better, with American Airlines and United Airlines seeing their share prices up more than 4 percent.

The herky jerky nature of the economic relief talks have played out over months, as the White House and Democrats have failed to agree on a broader support package. The economy showed some signs of recovery over the summer but not it appears pockets are softening again, with the travel industry last week announcing a spate of layoffs and the labor market remaining stubbornly weak while the coronavirus pandemic remains a factor in many parts of the country.

President Trump and Pelosi exchanged insults again on Wednesday, a sign that the broader relief talks are unlikely to be revived. But both sides did appear interested in trying to work out some sort of immediate aid for the airline industry, which has seen a dramatic drop in traffic since earlier this year. Last week, American and United began furloughing more than 30,000 employees.

Mnuchin’s outreach came amid a growing backlash from Republicans running for reelection who questioned – and in some cases denounced – Trump’s decision to end negotiations between Mnuchin and Pelosi on a broader relief package. Trump had announced Tuesday that he was asking Senate Majority Leader Mitch McConnell (R-Ky.) to focus on confirming Amy Coney Barrett to the Supreme Court instead — a

White House aides downplay coronavirus aid chances; Pelosi blasts Trump, but discusses airline help

WASHINGTON (Reuters) – Top White House officials on Wednesday downplayed the possibility of more coronavirus relief, while House Speaker Nancy Pelosi disparaged President Donald Trump for backing away from talks on a comprehensive deal.

White House Chief of Staff Mark Meadows told reporters that “the stimulus negotiations are off,” echoing Trump’s announcement on Tuesday, and said in an interview on Fox News the administration backed a more piecemeal approach to help some sectors of the economy.

But in a separate interview with CNBC, White House economic adviser Larry Kudlow said that approach would likely not work either.

“Right now in terms of the probability curve, this would probably be low low-probability stuff.”

On Tuesday evening, after having shut down the negotiations on a comprehensive coronavirus package during the day, Trump wrote on Twitter that Congress should pass money for airlines, small businesses, and stimulus checks of $1,200 for individuals.

Pelosi told ABC’s “The View” that Trump’s tweets were an effort to rebound from “a terrible mistake,” but she brushed aside questions about doing a slimmed-down aid package, still favoring a comprehensive version.

“It is really important for us to come to this agreement,” she said.

Pelosi, however, did ask Treasury Secretary Steven Mnuchin on Wednesday to review a standalone bill for $25 billion in aid to airlines that Democrats tried to advance last week, her spokesman wrote on Twitter. [L1N2GY0NM]

Mnuchin, who had been Pelosi’s negotiating partner as they tried to reach a comprehensive package in recent days, had asked her about the possibility of a standalone airlines bill in a telephone call Wednesday.

As for Trump’s suggestion about the stimulus checks, Pelosi told ABC: “All he has ever wanted in the negotiation is to send out a check with his name printed on it.”