Economics

U.S. Economy Risks ‘Tragic Scenario’ on Trump’s Stimulus Pullout

Growth at risk of stalling in fourth quarter after bounceback
Risks increase for ‘tragic scenario,’ economist says

Watch: President Donald Trump has ended talks on a new stimulus package, announcing on Twitter that he’s putting negotiations on hold until after the election. (Source: Bloomberg)

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By Olivia Rockeman, Christopher Condon, and Jarrell Dillard

October 6, 2020 at 4:56 PM EDT

Updated on

October 7, 2020 at 8:25 AM EDT

This article is for subscribers only.

The collapse of pre-election U.S. stimulus talks threatens to inflict another wave of economic pain on Americans and curtail a recovery that’s already slowed.

President Donald Trump’s decision Tuesday to walk away from talks with Democrats amid differences over the size of stimulus -- even though hours later he appeared to reverse course -- likely ended the chances of a relief package before the Nov. 3 election. Aid might be delayed until January or February, after a new Congress is seated, meaning there could be a period of four or five months without additional support for jobless Americans and small businesses.