White House Chief of Staff Meadows has crossed the wires saying that the Democrats indicated unwilling to negotiate down their demand for extending $600/week supplemental unemployment benefit, Reuters reports.
Key notes
- White House chief of staff meadows says talks on coronavirus relief bill are "still in the second inning".
- Meadows asked whether the piecemeal approach to extending aid is out, says "I don't know that anything has been definitively ruled in or out".
- Meadows says democrats have indicated that they are unwilling to negotiate down their demand for extending the $600 a week supplemental unemployment benefit.
Market implications
The partisan wrangling comes as US coronavirus cases have passed 4.3 million, with nearly 150,000 people killed in the country, and tens of millions out of work.
The US dollar is broadly pressured as the US heads towards a fiscal cliff while plunging consumer expectations are reflecting anxiety over a pick-up in Covid-19 cases, the reversal of reopening strategies and worries over the financial implications of the conclusion of the $600 a week Federal unemployment payment.
This all makes for a very important event in the Fed today which will no doubt cement the sentiment that it is going to be a very long bumpy road ahead for the US economy.
Markets will expect for the Fed to confirm recent hints about the benefits of an average inflation target, which would allow rates to stay lower for longer.
This would likely pressure the greenback, despite its technically overstretched short positioning across the financial and commodity markets.
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