U.S. Economy Risks ‘Tragic Scenario’ on Trump’s Stimulus Pullout

• The collapse of pre-election U.S. stimulus talks threatens to inflict another wave of economic pain on Americans and curtail a recovery that’s already slowed.
• President Donald Trump’s decision Tuesday to walk away from talks with Democrats amid differences over the size of stimulus -- even though hours later he appeared to reverse course -- likely ended the chances of a relief package before the Nov. 3 election. Aid might be delayed until January or February, after a new Congress is seated, meaning there could be a period of four or five months without additional support for jobless Americans and small businesses.
• The decision puts the economic rebound at risk of stalling in the fourth quarter, with activity remaining well below its pre-pandemic level amid the coronavirus’s persistent spread and the wait for a vaccine. It could leave the Federal Reserve under pressure to provide more support.

(Source: Bloomberg)