Happy Friday and welcome back to On The Money, where we’re wishing everyone a safe and healthy weekend. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
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THE BIG DEAL–Pelosi, Trump strike deal on coronavirus response package: Speaker Nancy Pelosi (D-Calif.) said Friday she had a deal with President Trump on a multibillion-dollar stimulus package aimed at assisting millions of Americans directly hurt by the coronavirus outbreak.
- The agreement purportedly struck Friday aims to ease some of the economic stress by providing financial assistance to those most directly affected by the crisis, including unemployment and paid leave benefits.
- On a broader level, the deal aims to calm some of the public trepidation and market turmoil of recent weeks by demonstrating that Washington policymakers can put aside partisan differences and unite quickly behind an emergency response befitting — at least in rhetoric — the severity of the crisis.
The Hill’s Scott Wong and Mike Lillis break it down here.
Questions remain: Soon after Pelosi’s announcement, questions about the viability of the deal emerged when Fox Business Network host Lou Dobbs said an interview planned with Treasury Secretary Steven Mnuchin at 7 p.m. would be postponed while the secretary spoke with Trump, who purportedly said there wasn’t actually a deal.
House Majority Leader Steny Hoyer (D-Md.) then told reporters at the Capitol that the White House felt the text of the deal did not line up with what Pelosi and Mnuchin agreed to.
Soon after, Mnuchin appeared on Dobbs’s show to announce “We have an agreement that reflects what the president talked about in his speech the other night.”
The uncertain road to a deal: The deal arrived after days of roller-coaster negotiations that put the outcome in doubt as the nation’s leaders raced to ease public anxiety and stabilize volatile markets.
- Just hours before the deal was announced, Trump suggested in a Rose Garden address that he wasn’t on board, raising doubts that the two sides could come together.
- Pelosi had been engaged in intense negotiations throughout the week with Mnuchin, Trump’s point person on the second round of emergency coronavirus relief. On Thursday, the two spoke at least four times by phone as they neared an agreement, aides said.
- To get there, they had to iron out a small handful of delicate wrinkles that threatened to sink the entire package.
What’s inside the deal: The deadly pandemic has roiled the stock market, upended small businesses and large industries alike, and canceled major sporting and political events around the country. Millions of Americans could lose income — or their jobs entirely — due to mass public closures, work-from-home orders and the economic downturn sure to follow.
Here’s how Pelosi described the deal to Democratic colleagues in a Friday letter:
“For families’ economic security: we secured paid emergency leave with two weeks of paid sick leave and up to three months of paid family and medical leave. We have also secured enhanced Unemployment Insurance, a step that will extend protections to furloughed workers.
“For families’ food security: we strengthened nutrition security initiatives, including SNAP, student meals, seniors’ nutrition and food banks. 22 million children rely on free or reduced-price school meals for their food security; we must ensure that they have food to eat.
“For families’ health security: we increased federal funds for Medicaid to support our local, state, tribal and territorial governments and health systems, so that they have the resources necessary to combat this crisis. “
What comes next: The House will likely pass the deal Friday night to tee up a Senate vote on the measure Monday morning. Of course, three days is a long time in Trump’s Washington, and you can never be certain of a breakthrough until Trump puts his name on the bill.
Read more: 10 things to know today about the coronavirus.
LEADING THE DAY
Trump declares national emergency over coronavirus: President Trump on Friday declared a national emergency over the coronavirus, freeing up additional resources and funding as federal, state and local governments attempt to combat the rapidly spreading disease.
The move allows the Federal Emergency Management Agency (FEMA) to tap into billions of dollars and mobilize personnel more quickly to help state and local agencies and leaders respond.
“I am officially declaring a national emergency — two very big words,” Trump said in remarks in the Rose Garden, adding that the move would release up to $50 billion in federal aid.
- As part of the government response, Trump said he would waive interest on federal student loans “until further notice,” and that the Department of Energy would buy up crude oil for storage in U.S. reserves.
- The president urged states to set up emergency operation centers and hospitals to active emergency preparedness plans, as well as a partnership with private companies to increase testing capabilities. He also said that the administration was working to set up drive-thru test sites.
The Rose Garden appearance, which lasted for more than an hour, marked the second time this week Trump has tried to reassure the nation that administration is prepared to respond to the coronavirus pandemic. A Wednesday Oval Office address largely skirted specific health measures and failed to calm nervous investors.
Market surges with long road ahead: But stocks rallied to end a crushing week of losses as Trump, public health officials and corporate CEOs on Friday afternoon detailed the next phase of the United States’s response to the coronavirus pandemic.
The Dow Jones Industrial Average closed Friday with a gain of 1,985 points, rising 9.4 percent after it suffered its steepest one-day decline since the 1987 crash on Thursday. The S&P 500 closed with a gain of 9.2 percent, while the Nasdaq composite rose 9.3 percent on the day.
Friday’s stock market rally marks what may be a brief interlude in a steady plunge in financial markets.
- Public health officials have warned that the number of confirmed coronavirus cases in the U.S. is certain to rise quickly and have urged Americans to take drastic measures to slow the spread of the illness.
- The resulting decline in consumer spending is likely to cost vulnerable service and gig workers crucial income, and deprive small businesses and the broader economy of essential fuel to support the job market and steady growth.
NEXT WEEK’S NEWS, NOW
- Next week and the foreseeable future will be dominated by the coronavirus pandemic, the nation’s response to it, and how it impacts the economy. The Federal Reserve’s policymaking arm, the Federal Open Market Committee (FOMC), will meet next Tuesday and Wednesday and play a crucial role in all three. The Fed is almost certain to cut interest rates, likely to 0 percent, and announce further measures to keep the financial system stable amid the pandemic.
GOOD TO KNOW
- President Trump announced Friday that four cruise lines will suspend outbound trips for 30 days at his request amid concerns over the coronavirus.
- Jack Ma, the billionaire co-founder of e-commerce giant Alibaba, announced Friday that he plans to donate 500,000 coronavirus test kits to the U.S. as well as 1 million face masks.
- The Federal Reserve Bank of New York will purchase $37 billion in Treasury bonds to boost liquidity in the crucial government debt market, it announced Friday.
- Reps. Josh Gottheimer (D-N.J.) and Paul Mitchell (R-Mich.) are calling on the IRS to push back the tax filing deadline in response to the coronavirus pandemic.
RECAP THE WEEK WITH ON THE MONEY:
- Monday: Trump to propose payroll tax cut over coronavirus | Congress weighs options to protect economy | Outbreak, oil prices drive market meltdown | Wells Fargo directors resign under pressure from Democrats
- Tuesday: Trump, Congress struggle for economic deal under coronavirus threat | Trump voices support for paid sick leave | Wells Fargo chief pledges fresh start for scandal-ridden bank
- Wednesday: Trump to deliver Oval Office statement on coronavirus | Trump, Dems split on stimulus options | Coronavirus fears throw Wall Street into bear market
- Thursday: Stocks suffer worst losses since 1987 crash amid coronavirus panic | Wall Street clamors for stimulus | Pelosi open to tweaking virus bill but won’t wait long for GOP