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Trump’s hopes of a fall economic rebound fade because of Trump

Politico: “After a spring and summer bolstered by cash infusions from the federal government of more than $3 trillion, the U.S. economy may have to sink or swim this fall with a relative trickle of support — presenting a significant threat to President Donald Trump’s standing as he heads into a compressed reelection campaign already trailing in the polls.”

“Negotiations on another large fiscal aid package remained stalled on Monday, and people close to the talks held no hope of any movement this week — perhaps even for the rest of the month. And economists mostly say Trump’s executive actions announced on Saturday would have limited impact, even if they manage to survive potential legal and operational challenges. For the moment, struggling small businesses are running out of their initial aid with no replenishment in sight. State and local governments face mounting budget shortages that could spur significant layoffs this fall. And schools are waiting on much-needed funding to open safely. Struggling households bolstered by previous direct federal payments may get no more cash anytime soon. And expanded unemployment benefits may drop substantially — even if Trump’s move survives in court — while millions remain out of work. Trump’s payroll tax deferral could also prove difficult to implement and is, at least for now, only a temporary reprieve rather than a permanent cut.”

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