US President Trump has ordered not to release a new stimulus package for the economy before the elections. The New York Stock Exchange promptly plunged into the red.
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Trump has asked Republican Senate Speaker Mitch McConnell to postpone talks with Democrats about a new stimulus package until after the Nov. 3 election. Trump says that “if he wins” he will present a better package of measures. “The best is yet to come,” he argues on Twitter.
In doing so, the president is countering a warning from Jerome Powell, the chairman of the US central bank, the Fed. This states that major economic consequences are imminent if the congress does not quickly approve new measures to limit the consequences of the corona crisis.
Trump’s decision immediately caused unrest on the stock exchange floor. The main stock market gauge Dow Jones was on slight gains until well after midday local time, but after Trump’s announcement, things went downhill, and the index plunged clearly into the red. A profit of more than half a percent was quickly turned into a loss of more than one percent. A company like Boeing soon had to give up more than five percent.
The Nasdaq technology index and the broader S&P 500 also fell sharply following the turmoil over stimulus packages.
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