Treasury Secretary Mnuchin says Democrats are unwilling to strike a ‘reasonable’ relief deal

Still, some on Wall Street grew hopeful Monday evening after multiple outlets reported that Senate Republicans were preparing to introduce their own “slimmer” deal.

The pared-down GOP relief bill is expected to include $300 in boosted weekly federal unemployment benefits until Dec. 27, another around of money for the Paycheck Protection Program and an incremental $10 billion for the U.S. Postal Service, according to both Politico and The Wall Street Journal.

The Republican bill is expected to appeal to GOP lawmakers who are split on whether — or how much — additional spending is needed to support the U.S. economy in the face of improving data. Democrats will likely cast the legislation as insufficient.

“There’s no question that the economic numbers are doing better. So, as we reopen the economy, we see things are getting better,” Mnuchin said. “But the president wants us to do more. He wants us to provide money for kids and jobs, and a second round of the PPP and direct payments are a clear part of that.”

Meanwhile, House Democrats are considering a vote on a scaled-back version of the HEROES Act, NBC News reported Tuesday. The chamber is returning this weekend to vote on a Postal Service bill to help prepare for a spike in mail-in voting, but some lawmakers also want the party to push forward on the pandemic relief.

The idea was floated Monday on a Democratic caucus call by Rep. Cedric Richmond, D-La., an ally of House Majority Whip Rep. Jim Clyburn, D-S.C., according to multiple sources who spoke to NBC News.

Richmond called for a vote on a $2 trillion to $2.4 trillion relief bill, a move some consider risky in creating a new benchmark in the Democrats’ position. Others, however, feel it’s worth the attempt to show both Republicans and the American people that they’re willing to compromise.

Contacted by CNBC later Tuesday afternoon, Pelosi’s office said that the Speaker has not changed her position in the negotiations and that she’s still willing to meet Republicans “halfway.”

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Article source: https://www.cnbc.com/2020/08/18/treasury-secretary-mnuchin-democrats-unwilling-to-make-reasonable-deal.html