Senate returns to stalled stimulus talks and government funding deadline

STIMULUS STALEMATEAnd we’re back! The Senate returns to Washington today after its summer recess, with a government funding deadline looming and Republicans looking to revive the stalled stimulus talks by pushing a new “skinny” proposal. But lawmakers only have a few weeks before they leave town again for the campaign trail, and as of right now, the path to a coronavirus deal is narrow at best and going nowhere at worst.

Majority Leader Mitch McConnell doesn’t even have 51 votes for the Senate GOP’s pared back coronavirus bill yet, let alone the 60 needed to overcome a filibuster, per my colleagues. And some Senate Republicans want to include language related to “school choice” programs, further complicating McConnell’s effort to round up GOP support for the package. (Though our friends at Playbook report that the White House will embrace a $1.5 trillion price tag this week, which represents some

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The downside of a strong jobs report? Less urgency for stimulus checks and enhanced unemployment benefits

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Call it a good news/bad news situation.

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When the Senate passed the $2.2 trillion CARES Act stimulus package by a 96-0 vote on March 25, the economy was in free fall. The S&P 500 stood at 2,475 points, and a record 6.9 million jobless claims were filed that week. Economists were talking about Great Depression 2.0.

But this time around, stimulus negations are happening with the backdrop of an improving economy. And that is reducing the political pressure for Republican and Democratic leaders to comprise.

On Friday we learned the unemployment rate dropped from 10.2% in July to 8.4% in August. That soundly beat Goldman Sachs’ estimate of 9.8%. And the U.S. added—or we should say regained—1.4 million jobs in August.

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Mario Draghi Says Stimulus Must Create New Jobs, Not Save Old Ones

(Bloomberg) — Former European Central Bank President Mario Draghi urged governments to channel stimulus funds toward sectors that can create new jobs for young people rather than spending money to defend the status quo.



Mario Draghi wearing a suit and tie: Mario Draghi, president of the European Central Bank (ECB), gestures while speaking during a rates decision news conference in Frankfurt, Germany, on Thursday, July 25, 2019. The ECB sent its strongest signal yet that monetary support for the euro-area economy will be stepped up after the summer break, with lower interest rates and renewed asset purchases on the table.


© Bloomberg
Mario Draghi, president of the European Central Bank (ECB), gestures while speaking during a rates decision news conference in Frankfurt, Germany, on Thursday, July 25, 2019. The ECB sent its strongest signal yet that monetary support for the euro-area economy will be stepped up after the summer break, with lower interest rates and renewed asset purchases on the table.

“Subsidies will have to go down but at the same time jobs will be created,” Draghi said at an online event. “It’s very good if the government succeeds in giving jobs and taking out subsidies, and again it’s especially good for young people.”

Draghi has largely kept a low profile after retiring from the ECB

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