Trump Surprised Staff With Promise Of Tuesday Announcement On Coronavirus Stimulus

President Trump surprised his staff by announcing the details of an economic package set to be unveiled Tuesday in response to chaotic markets that have been rocked by the impacts of coronavirus and an escalating oil price war, according to Bloomberg, citing ‘people familiar with the matter.’

As outlined by Trump in remarks Monday, the proposal will likely include a payroll tax cut and a short-term expansion of paid sick leave, according to the people, who described the proposal on condition of anonymity ahead of its planned release.

Trump’s administration had been working on potential stimulus measures for about 10 days but were unprepared to provide details this quickly, the people said. –Bloomberg

Stocks plunged over 7.5% on Monday, the worst day on Wall Street since the financial crisis (and worst since 1987 intra-day) which saw credit and funding markets start to show signs of extreme stress. This has put Trump under increased pressure to act on concerns that COVID-19 will trigger a recession.

Trump has also been blaming the Federal Reserve – slamming them as “pathetic” and “slow” in Tuesday morning tweets, adding “The Federal Reserve must be a leader, not a very late follower, which it has been!”

Our pathetic, slow moving Federal Reserve, headed by Jay Powell, who raised rates too fast and lowered too late, should get our Fed Rate down to the levels of our competitor nations. They now have as much as a two point advantage, with even bigger currency help. Also, stimulate!

— Donald J. Trump (@realDonaldTrump) March 10, 2020

The Federal Reserve must be a leader, not a very late follower, which it has been!

— Donald J. Trump (@realDonaldTrump) March 10, 2020

House Democrats, meanwhile, are set to hear from two economists on Wednesday for input as lawmakers consider a fiscal package in response to the coronavirus impact. Both have called for immediate action, with Harvard’s Jason Furman advocating for approximately $350 billion in aid.