(Bloomberg) — The White House plans to offer a $1.8 trillion stimulus proposal in talks Friday between Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi, as a top Republican expressed skepticism any deal could get through Congress before the election.
After walking away from talks with Democrats earlier this week, President Donald Trump has reversed course and is now looking for a deal with the election three weeks away and polls showing him trailing Democrat Joe Biden.
“The president has approved a revised package. He would like to do a deal,” Trump economic adviser Larry Kudlow said Friday on Fox Business. “It will be relatively broad based but I can’t go through details.”
Three people familiar with the matter said the White House is increasing its proposal to $1.8 trillion from the roughly $1.6 trillion Mnuchin previously brought into negotiations. Pelosi is proposing the $2.2 trillion package the House has already approved.
Stocks jumped after Kudlow’s remarks, with the S&P 500 Index up 1% as of 12:25 p.m. They had tumbled on Tuesday, when Trump pulled his team from stimulus negotiations.
Kudlow spoke a short time after Senate Majority Leader Mitch McConnell said there’s probably not enough time before the election to bridge the “vast” differences on a new virus relief package.
“I believe that we do need another rescue package, but the proximity to the elections and the differences of opinion about what is needed are pretty vast,” McConnell said at an event in his home state of Kentucky.
Mitch McConnell departs a television interview in the Russell Senate Office Building in Washington, D.C., U.S. on Oct. 6.
Photographer: Stefani Reynolds/Bloomberg
Even if there is an agreement, it would take time to write