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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
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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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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.