President Trump takes executive action in extending pandemic relief

Coronavirus aid talks between democratic leaders and the Trump administration came to a halt last Friday with president Trump stating that he would “act under [his] authority as president to get American the relief they need” if Congress fails to strike an agreement with his administration.

President Trump states that his pending executive orders would extend lapsed enhanced unemployment benefits through the end of the year at an unspecified level, suspend federal student payment loans and continue an expired eviction moratorium.

Although federal spending is controlled by the Congress, it is unclear what power Trump has to extend those programs stating with confidence that he was “not at all” worried about the legality of the moves.

Schumer called the huddle “disappointing” whilst leaving the Friday’s meeting. The White House rejected yet again their offer for Democrats to cut the asking price for their legislation by $1 trillion and for the Trump administration to increase its proposed spending by the same amount as stated by negotiators House Speaker Nancy Pelosi, and Senate Minority Leader Chuck Schumer.

In a tweet last Friday, Trump said “Pelosi and Schumer only interested in Bailout Money for poorly run Democrat cities and states. Nothing to do with China Virus! Want one trillion dollars. No interest. We are going a different way. “

Pelosi outlined several areas of disagreement in a letter sent to colleagues last Friday. It notable did not mention jobless benefits.

• She said Democrats aim to put $75 billion into Covid-19 testing and treatment, while the GOP includes $15 billion.
• Pelosi wrote that the GOP has offered $150 billion for states and municipalities, far below the $915 billion Democrats proposed.
• The speaker said the sides are “a couple hundred billion dollars apart” on money to help schools reopen. Republicans included the $150 billion for schools in their legislation.
• Pelosi called for more money for food, water and utility assistance than the GOP has proposed.
• She said Democrats wanted to secure more concessions on ensuring a complete Census and safe voting during the pandemic.

The democrats and the White House should take massive effort to reach the outline of the deal. As days go by, the problem seems to reach new heights as the expiration of both the $600 per week enhanced federal unemployment benefit and the eviction moratorium late last month have left millions of Americans scrambling to cover bills and remain in their homes.

On Saturday, President Donald Trump seemed impatient and signed a series of executive orders expanding coronavirus economic relief to Americans struggling during the pandemic.

The president’s four orders are:

1. Extended unemployment benefits
2.  Provide a payroll tax holiday
3. Defer student loan payments through 2020
4. Extend the federal moratorium on evictions

“We’re going to save American jobs and provide relief to the American workers.” Trump said during a press conference at his private golf club in Bedminster, New Jersey.

President Trump will establish a payroll tax holiday through the end of the year to Americans earning less than $100,000 per year and instruct the Treasury department to allow employers to defer payment of the employee portion of certain payroll taxes adding that if he was re-elected in November, he would look to extend the deferral and “terminate” the tax, which funds Social Security and Medicare programs.

The president’s orders also extended the weekly unemployment bonus at a reduced level of $400 per week instead of the $600 per week federal unemployment insurance that was approved in March and expired at the end of July.

Officials in Washington have faced pressure to boost the economy wrecked by the pandemic and injecting resources into a health-care system struggling to handle waves of infection.

The eviction moratorium also ended last July leaving millions on wondering how they will afford food and stay in their homes.

Despite the countermeasures that president Trump ordered, Pelosi and Senate Minority Leader Chuck Schumer remains unsatisfied and wrote:

“We’re disappointed the instead of putting in the work to solve Americans’ problems, the President instead chose to stay on his luxury golf course to announce unworkable, weak and narrow policy announcements to slash the unemployment benefits that millions desperately need and endanger seniors’ Social Security and Medicare” -Pelosi and Schumer

TECHNICAL OUTLOOK

Is it possible that this stimulus talk affected the dollar positively? As we see in the daily charts of EUR/USD, price completely resisted at 1.19sh at the end of last week closing on Friday with a bearish candle. Will the US Dollar re-gain its glory this Q3? Could this be a bearish week for the EUR?

This has been a tough fight for the US dollar as we see it declining from other currencies such as the Japanese Yen and British Pound. Will the dollar redeem itself starting this week?

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