Top Democrats and Republicans on Tuesday were optimistic that a compromise trillion-dollar coronavirus economic stimulus bill would be agreed to later in the day, as stocks soared on optimism over an emerging plan.
Senate Majority Leader Mitch McConnell, speaking at the opening of Tuesday’s Senate session, said he believes negotiators are on “the five-yard line.”
“Today we can make all of the Washington drama fade away,” the Kentucky Republican said. “We are very close.” Senate Minority Leader Chuck Schumer echoed McConnell’s optimism. “Right now, we’re on the two-yard line,” said the New York Democrat. He said a deal could be struck in hours.
Related: As talks drag on, Senate debate for stimulus to combat coronavirus turns snippy
Earlier on CNBC, House Speaker Nancy Pelosi also saw reason to be upbeat.
“There is real optimism we could get something done in the next few hours,” the California Democrat said.
The measure would include direct checks for Americans, expanded unemployment insurance and an unprecedented lending program to small- and medium-size businesses using the Federal Reserve’s emergency-lending powers.
There was no doubt that everyone appreciates the gravity of the moment, Pelosi said, but added the problem were “poison pills” in the Senate Republican bill that have to be stripped out.
She said she was working to add more provisions that assist workers struggling as their firms shut down.
Pelosi said there was agreement on oversight of the $500 billion fund to assist companies hurt by the shutdown of the economy. “I think we’re on a good track,” Pelosi said.
U.S. Treasury Secretary Steven Mnuchin echoed the sentiment of the two leaders.
“We’re looking forward to closing a bipartisan deal today,” Mnuchin told reporters at the U.S. Capitol on his way to a meeting at McConnell’s office.
President Donald Trump urged lawmakers to finish a deal today. “The longer it takes, the harder it will be to start up our economy. Our workers will be hurt!” he said in a tweet.
Sen. Joe Manchin, a West Virginia Democrat who had been visibly opposed to the bill unless its health care provisions were beefed up, said his concerns had mostly been addressed.
“They’re drafting and hope to have that done I’m told in the next two or three hours,” Manchin said.
A senior Trump administration official said the oversight provisions on the $500 billion fund would be similar to those in the 2008 Troubled Asset Relief Program.
“Similar to what we did in TARP where there was both the Inspector General for the operation… and an oversight committee, an oversight board. You remember that’s how Elizabeth Warren made her bones,” the official said, speaking on condition of anonymity.
The official also said negotiators were looking at giving airlines a choice of taking either loans or grants for help, but not both. There would be restrictions on stock buybacks and CEO pay, the official said.
Manchin said he was happy with the final health care provisions.
“We fought for the things we thought were the most important, which is health care workers. Hospitals have insolvency (protection). That’s been up to the $100 billon,” Manchin said.
As for how much it will.cost, Eric Ueland, the White House’s legislative affairs director, told reporters, “It is likely that the package will end up at or a little above $2 trillion.”
A Senate procedural vote to move forward — two of which had failed in two days — would likely instead be reduced to a unanimous consent agreement, Manchin said, though he still expected the final Senate vote to be a roll call one.
U.S. equity benchmarks were sharply higher Tuesday. Market experts said the Fed’s massive bond buying and emergency lending was beginning to improve market function and there was also hope a stimulus deal could be approved. The Dow Jones Industrial Average DJIA, +9.11% was up 1,338 points in morning trading.
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