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It’s an insane time for Trump to reject stimulus

It’s an insane time for Trump to reject stimulus

If he wants to get reelected, President Donald Trump needs the economic recovery to continue. That’s why his decision to unilaterally abandon talks over a bold stimulus package is so bizarre.



a building with a metal pole: An American flag is placed on a fence outside of the U.S. Capitol building on September 28, 2020 in Washington, DC. This week Seventh U.S. Circuit Court Judge Amy Coney Barrett, U.S. President Donald Trump's nominee to the Supreme Court, will begin meeting with Senators as she seeks to be confirmed before the presidential election. (Photo by Al Drago/Getty Images)


© Al Drago/Getty Images
An American flag is placed on a fence outside of the U.S. Capitol building on September 28, 2020 in Washington, DC. This week Seventh U.S. Circuit Court Judge Amy Coney Barrett, U.S. President Donald Trump’s nominee to the Supreme Court, will begin meeting with Senators as she seeks to be confirmed before the presidential election. (Photo by Al Drago/Getty Images)

The economy is screaming out for more help. The unemployment rate has never been this high heading into a presidential election. Airlines are cutting tens of thousands of jobs. Restaurants and retailers are going bankrupt. And small businesses are closing for good.

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Markets tanked Tuesday after Trump shocked Wall Street by rejecting Democrats’ stimulus offers and halting talks over a major package.

Not only is stimulus needed, it’s very popular with voters, some of whom have recently soured on Trump’s economic track record. Long his signature issue, Trump’s lead over Biden on the economy has vanished in recent polling.

Trump knows all of this. That’s why just last month the president was pushing Republicans in Congress for more, not less, fiscal stimulus.

The risk for Trump is that his sudden reversal could backfire by derailing the fragile recovery. At a minimum, it guarantees a slower, more painful recovery.

“It was an unforced, egregious error that puts the economy at substantial and needless extra risk,” said Larry Summers, former US Treasury Secretary for President Bill Clinton. “The last thing we need to do is cancel our recession insurance at a moment like this.”

Double-dip recession risk is rising

Perhaps that’s why Trump seems to

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