Conversational talks have come to a useless finish as Senate Republicans object to the White Home bundle

House Democrats and White House officials tell conflicting stories about the status of the drawn-out Sunday morning negotiations on the Covid-19 relief bill, and a deal before election day seems less likely over time.

On CNN's Sunday morning state, White House economic adviser Larry Kudlow told host Jake Tapper that, despite opposition from many Senate Republicans, he doesn't believe any deal between the Trump administration and House Democrats was dead.

"No, I don't think it's dead at all," said Kudlow. "I think if an agreement can be reached, (Senate Republicans) will go along." Kudlow tried to overcome the impasse as a problem with Democrats when in fact it was the President's own party, which is the greatest opposition to a deal.

It is about proposed duels between House Democrats and negotiators from the White House. House Democrats passed a revised version of their HEROES bill earlier this month, which now includes $ 2.2 trillion (up from around $ 3 trillion in the version passed in May) to include an extension of expanded unemployment insurance and another To cover round of economic reviews. But the White House rejected that package and countered it with its own $ 1.8 trillion proposal.

House spokeswoman Nancy Pelosi said in a letter to House Democrats that talks "remain at a dead end" Sunday morning.

"This proposal was one step forward, two steps back," she wrote in the letter. referring to the negotiations. "When the president talks about wanting a bigger aid package, his suggestion seems to mean that he wants to give or withhold more money at his own discretion, rather than agreeing on a language that dictates how we honor our workers, the virus." destroy and put money in the EU pockets of workers. "

Last week had negotiations As Vox's Li Zhou explained, five major disagreements arose, which included state aid and the language related to coronavirus testing and contact tracing.

The use of another stimulus is high. Earlier this week, Federal Reserve Chairman Jerome Powell warned that another wave of coronavirus could hit the economy hard and urged the government to provide more stimulus to the struggling Americans.

The same day he made that statement, Trump tweeted that he was going to break off negotiations with House Democrats, saying he would only get involved again if he wins the election. After a stock market slump in response to his tweets and possibly influenced by his falling polls, Trump quickly turned around.

… inquire and look into the future of our country. I have instructed my representatives not to stop negotiations until after the election if, immediately after my victory, we pass a major stimulus bill that focuses on hardworking Americans and small businesses. I asked…

– Donald J. Trump (@realDonaldTrump) October 6, 2020

For a deal to happen, Trump must get his party's buy-in. Over 20 Senate Republicans have now publicly stated that, despite a still crater-like economy, they oppose a second round of relief or are holding back, even if the White House approves a deal.

It is perhaps the firmest break the Chamber's GOP members have made with Trump in recent times.

A new wave of infections could mean the fate of the economy

The failure to adopt a new economic stimulus package comes against the backdrop of a difficult economy and a worsening pandemic.

Johns Hopkins announced Sunday morning for the fourth straight day with over 50,000 new cases of Covid-19 in the US. some of the worst numbers in the pandemic since early August. It's an alarming number for a fragile economy in a volatile election cycle.

Although the unemployment rate improved from 14.7 percent in April to 7.9 percent in September, the number of Americans seeking unemployment benefits remains extremely high, according to the US Labor Bureau. If the pandemic forces states to re-locks or new business closings, the numbers could only get worse.

This could spell disaster for the slowly recovering economy, especially if a deal isn't reached and Senate Republicans refuse to play ball.

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