Dissent Grows Among Democrats as Pelosi Refuses to Deal
Author: Greg Valliere
September 16, 2020
HOUSE DEMOCRATS RETURNED TO WASHINGTON yesterday in a foul mood, bickering over their inability to get a stimulus bill for their reeling constituents. A sizable minority is grumbling about Nancy Pelosi, who refuses to deal.
EVEN THOUGH THE HOUSE has veered leftward in recent years, there are several moderate groups — the Blue Dog Democrats, the New Democratic Coalition and the Problem Solvers. Some of these Democrats are facing tough election fights, and they would support a scaled-backed stimulus.
PELOSI HAS BACKED AWAY from the $3.4 trillion bill that the House passed in May; sources report she would accept something around $2 trillion. Many Republicans want to pass little or nothing, but we’re hearing that Treasury Secretary Mnuchin has been authorized by the White House to offer about $1.5 trillion.
THAT’S BECAUSE PRESIDENT TRUMP wants to pass a stimulus bill and believes that it could help the markets and the economy — and, of course, it could help his re-election prospects. He has declared, correctly in our opinion, that Pelosi doesn’t want a bill because passage could help him politically.
THESE POLITICAL CALCULATIONS DON’T MATTER to constituents who are facing evictions, bankruptcy, and the collapse of small businesses. They gave House members an earful during the long summer break, and this could motivate Congress to act. “We can’t do nothing,” one Democrat told Politico.
AS ONE DEMOCRATIC STAFFER TOLD US yesterday, if the White House could accept $1.5 trillion and the Democrats could agree to $2 trillion, there’s room for a compromise. “Pelosi is determined to win a political victory, but her refusal to compromise is costing her support among her among her troops,” the staffer said.
PELOSI, 80, LIVES ON NOB HILL in San Francisco and may be out of touch with Americans who are struggling, many members complain. And they detect some differences between her and House Majority Leader Steny Hoyer, 81, who may not agree with Pelosi’s vow to keep the House in session for much of October.
OUR BOTTOM LINE is that a stimulus bill isn’t totally dead. The need for more relief
has overwhelming support among economists (and Fed Chairman Jerome Powell). Pelosi is getting a clear signal that it’s time to deal — she won’t talk with Trump, but she’s on cordial terms with Mnuchin, who is prepared to try again for a compromise.
The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.
AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is a registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
For further information, please visit AGF.com.
©2022 AGF Management Limited. All rights reserved.
