Nancy Pelosi says the stock-market slide could force Trump to quickly negotiate a large stimulus deal

trump pelosi
President Donald Trump and House Speaker Nancy Pelosi. Getty Images
  • House Speaker Nancy Pelosi said in an MSNBC interview that the recent stock tumble could push Trump to pursue a large economic-aid package.

  • Her remarks came as the Dow Jones Industrial Average plunged 943 points on Wednesday, its worst day since June.

  • Virus cases are rising across the nation and economic-aid talks have been largely put off ahead of the election.

  • Visit Business Insider's homepage for more stories.

House Speaker Nancy Pelosi said on Wednesday that the stock-market slide could push President Donald Trump to seek a large economic rescue package, given the importance he's always placed on stocks.

"What the president cares a lot about is the stock market, and as he sees the market react to the spread of the virus, and he sees the market react to the fact that we do not have an agreement which could inject resources into the economy, hopefully now he will come to the table in a serious way to crush the virus," she told MSNBC.

Her remarks come as stocks have tanked in recent days. The Dow Jones Industrial Average dropped 650 points on Monday, and it dipped Tuesday as well. Then it plunged 943 points on Wednesday in its worst day since June.

The Dow Jones has shed 2,400 points since Sept. 2, The Washington Post reported, a reduction of around 8%. It accelerated on Monday, ending a steady rebound which began in March on the back of a massive intervention from both Congress and the Federal Reserve.

Virus cases are surging across the nation, dovetailed with a rise in hospitalizations in a majority of states. Meanwhile, economic-relief talks between the White House and Democrats have been largely put off ahead of Election Day next week.

Many economists are calling for additional federal spending to prop up the economy as it displays signs of weakening. Job growth slowed in September compared to previous months, and permanent layoffs are rising among workers.

The unemployment rate has come down from a high of 14.7% in April to 7.9% in September.

Read more: An investment chief overseeing $23 billion breaks down 2 critical election-linked risks facing the market — and shares the smartest way to turn them both into profit opportunities

Stimulus talks between Pelosi and Treasury Secretary Steven Mnuchin are crawling along with very few signs of progress. The pair are negotiating a roughly $2 trillion package that would include $1,200 stimulus checks, federal unemployment benefits, and small-business aid. There are still major disagreements to be ironed out.

Trump strongly supports passing another stimulus package, though one is no longer expected before November 3. He told rallygoers in Pennsylvania on Tuesday: "After the election, we'll get the best stimulus package you've ever seen."

But the president's approach was highly unpredictable over the past month. Trump has veered from cutting off relief negotiations to pressing for more money than Democrats in a short time frame.

It's also highly uncertain whether Congress will pass another rescue package in a "lame-duck" session after the election. Lawmakers haven't approved further aid since the pandemic sparked a $3 trillion surge of emergency spending in the spring as the pandemic slammed the economy, causing a historic wave of job losses and bankruptcies.

Read the original article on Business Insider