US Pres.Trump demands payroll tax cut in next COVID-19 relief bill – Politico

During the early Friday, Politico came out with the news suggesting US President Donald Trump is seeking a payroll tax cut in his next coronavirus (COVID-19) relief bill.

Key quotes

President Donald Trump has signaled to Hill Republicans that he will not sign a new coronavirus stimulus package without the inclusion of a payroll tax cut, according to three sources close to the issue.

This new red line from the White House serves to illustrate the challenges that lay ahead in negotiating another Covid-19 relief package. GOP and Democratic congressional leaders are trillions of dollars apart in funding goals for the package, as well as how those funds will be spent.

Negotiations will start in earnest next week, when both chambers come back into session following a two-week recess. Speaker Nancy Pelosi (D-Calif.) suggested Thursday that she has been in touch with individual Senate Republicans in advance of the talks, but there’s no sign that she and McConnell have held any discussions.

The proposal would also provide additional protections for frontline medical workers and protect employers from lawsuits stemming from stay-at-home orders or from injuries resulting from coronavirus testing.

FX implications

 The news fails to offer any life to the dull market session. Even so, hopes of further stimulus keep the S&P 500 Futures mildly bid around 3,200 as we write.