Analysis: Trump or Biden, new U.S. president faces troubled economy

By Ann Saphir and Jonnelle Marte

(Reuters) – It’s still not clear yet if the next U.S. president will be incumbent Donald Trump or Democratic challenger Joe Biden, but whoever triumphs will face monumental challenges on the economic front.

The recession has been ugly. It has wiped away more than a year of economic output and more than five years of jobs growth.

The workforce is now smaller than it was a year before Trump first took office.

One bright spot – consumer spending – is stronger than it was right after the pandemic exploded in March, but still only back to where it was last June.

Housing prices are on the rise, which is a great thing for U.S. homeowners but at the same time is worsening the affordability crisis for aspiring home buyers.

Manufacturing activity – a key concern in the Midwestern battleground states – has rebounded, but manufacturing employment is in worse shape than employment overall.

And the coronavirus is still surging across most of the United States. Nearly 6,000 people died last week, and there’s growing concern that the U.S. might need to reinstate lockdowns that happened across Europe in order to get it under control.

But despite signs the economy has begun to slow again amid another viral onslaught, “it is almost certain that the economy will get better over the course of 2021,” says Jason Furman, a key economic advisor to Barack Obama, the last U.S. president elected during a time of economic turmoil.

Late 2021 is still a long ways away, not just in political terms but for those living paycheck to paycheck, or out of work.

Federal Reserve policymaker projections put unemployment at 5.5% by the end of next year – worse than the 4.7% when Trump was first elected, but an improvement over the current 7.9%.

Beyond jobs lost and economic output curtailed, either Trump or Biden will face a list of long-term headwinds including deepening inequality, rising federal debt and tattered international trade relations.

In the run-up to the election, Trump consistently polled better than Biden on his ability to create jobs and manage the economy, if not the virus.

But even with the election outcome uncertain, and likely to remain so for some time amid legal challenges, stock market investors like what they see.

That’s partly because Republicans look likely to keep their hold on the Senate, leaving policy priorities relatively unchanged if it’s Trump emerging the winner, or as preventive force to a president Biden from trying to push through any big policy changes should he come out on top in the ballot box.

It’s also because Senate Majority Leader Republican Mitch McConnell signaled Wednesday he was open to a new coronavirus aid bill in the “lame duck” session before the elected members of Senate and U.S. House of Representatives are sworn in.

For the still-weak economy, a lot will depend on the timing, size and shape of a pandemic relief package, which eluded lawmakers and the White House before the election.

A more modest fiscal package could mean “the growth outlook and corporate profits may not be as vigorous as hoped,” said James Knightley, chief international economist for ING.

A Biden presidency with a majority Republican Senate could offer the worst case for the economy in 2021 because Republicans are likely to oppose a substantial stimulus package, said Matthew Luzzetti, chief U.S. economist at Deutsche Bank.

That would be bad news for the millions of low- and middle-income Americans out of work and struggling to find jobs in sectors such as travel and entertainment that are likely to remain moribund until the pandemic is under better control.

A scenario where Trump is re-elected and the Senate stays in Republican control could potentially result in more stimulus because Trump has advocated for more stimulus and could have more sway if he is re-elected, Luzzetti said.

Whatever the election outcome, any aid package should provide additional assistance for the unemployed, help for small businesses and assistance for state and local governments, to keep economic momentum going, Luzzetti said.

(Reporting by Ann Saphir and Jonnelle Marte; Editing by Heather Timmons, Paul Simao and Edward Tobin)

‘Full steam ahead:’ Senate Republicans to push court nominee despite Trump’s COVID-19 status

WASHINGTON (Reuters) – The U.S. Senate Judiciary Committee’s plan to begin confirmation hearings for U.S. Supreme Court nominee Amy Coney Barrett on Oct. 12 remain unchanged, despite President Donald Trump’s positive COVID-19 test result, a Senate aide said on Friday.

“Full steam ahead,” the aide to Senate Judiciary Committee Chairman Lindsey Graham responded to Reuters, when asked if the hearing schedule for hearings to begin on Oct. 12 could change.

Graham spoke to Trump on Friday morning and said the first thing Trump asked was about was the Senate’s plan for his nominee’s confirmation, the aide added.

Senate Majority Leader Mitch McConnell also said the Senate would advance Barrett’s confirmation but sounded a cautious note about the potential impact of COVID-19.

“I think we can move forward. Our biggest enemy, obviously, is … the coronavirus, keeping everybody healthy and well and in place to do our job,” McConnell told radio talk show host Hugh Hewitt.

McConnell described the Senate’s decision on whether to confirm Barrett as being “front and center for the American people” and said the Senate would act after a committee recommendation due Oct. 22.

Barrett’s nomination faces fierce opposition from Senate Democrats and will face questions about her judicial philosophy and approach to the law when she comes before Graham’s panel.

Democrats argue the vacancy should be filled after the next president is chosen on Nov. 3, a view shared by a majority of Americans, according to recent national polls. Trump’s Republican allies, who hold a 53-47 majority in the Senate, have vowed to follow a compressed timeline to confirm her before then.

Barrett, seen as a reliable conservative, would replace Justice Ruth Bader Ginsburg, a champion of gender equality and other liberal causes who died on Sept. 18 at age 87. She previously sat for a hearing when she was appointed by Trump to the Chicago-based 7th U.S. Circuit Court of Appeals in 2017.

(Reporting by David Morgan; Editing by Scott Malone and Chizu Nomiyama)

White House, Democrats remain far from deal on fresh round of COVID-19 aid

By David Morgan and Susan Cornwell

WASHINGTON (Reuters) – U.S. House Speaker Nancy Pelosi cautioned on Thursday that Democrats and the Trump administration remain far from agreement on COVID-19 relief in several key areas, saying the two sides were locked in debate over both dollars and values.

Congressional Democrats led by Pelosi have proposed a $2.2 trillion package to respond to a pandemic that has killed more than 207,000 Americans and thrown millions out of work. Republican President Donald Trump’s negotiating team has suggested a $1.6 trillion response, and the White House on Thursday dismissed Democrats’ offer as not serious.

As lawmakers prepared to leave Washington for the remaining weeks of the 2020 presidential and congressional campaign, Pelosi was to speak again to Treasury Secretary Steven Mnuchin by phone at 1 p.m. EDT (1700 GMT), a source familiar with the situation said. They were expected to try to bridge divisions over aid to state and local governments, Democratic demands for a child tax credit and stronger worker safety, healthcare and small businesses.

“We not only have a dollars debate, we have a values debate. Still, I’m optimistic,” Pelosi said at her weekly news conference.

That public confidence belied Pelosi’s message to fellow Democrats in a Thursday call. She told colleagues “I don’t see a deal happening right now,” a Democratic leadership aide said, confirming an earlier Politico report.

White House spokeswoman Kayleigh McEnany dismissed the Democratic proposal as “not a serious offer.”

Pelosi said of the White House proposal on Bloomberg TV: “This isn’t half a loaf. What they’re offering is the heel of the loaf.”

A bipartisan deal has been long delayed by disagreements over Democratic demands for aid to state and local governments and Republican insistence for a provision protecting businesses and schools from coronavirus-related lawsuits.

Republican Senator Mike Braun told CNBC on Thursday that a deal worth over $1.6 trillion could be rejected by one-third to one-half of Senate Republicans. That would still allow a bill to pass with support from Democrats.

Pelosi and Mnuchin met for 90 minutes in the U.S. Capitol on Wednesday and each emerged pledging to continue discussions.

Mnuchin raised hopes of an agreement by telling reporters that the discussions had made “a lot of progress in a lot of areas.”

Lawmakers and securities analysts viewed talks as a last-gasp effort to secure relief ahead of the Nov. 3 election for tens of millions of Americans and business including U.S. airlines, which have begun furloughing over 32,000 workers.

The Trump administration has proposed a $20 billion extension in aid for the battered airline industry, White House chief of staff Mark Meadows told reporters late on Wednesday. The extension would run for six months.

Mnuchin said separately that a deal would also include direct payments to American individuals and families.

Pressure for a deal has been mounting on the White House and Congress, from the devastating effects of a coronavirus pandemic that has infected more than 7.2 million people in the United States.

The House of Representatives was expected to vote on its $2.2 trillion Democratic package, a day after initial plans for action were delayed to give more time for a deal to come together.

Senate Majority Leader Mitch McConnell, a Republican who has not participated directly in the negotiations, said on Wednesday that the House bill’s spending total was too high.

(Reporting by Susan Cornwell and David Morgan; additional reporting by Susan Heavey, Doina Chicacu, Daphne Psaledakis and Lisa Lambert; Editing by Scott Malone, Chizu Nomiyama and Jonathan Oatis)

Pelosi, Mnuchin approach 11th hour on U.S. COVID-19 aid talks

By David Morgan

WASHINGTON (Reuters) – U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin were expected to try again on Thursday to reach a deal on COVID-19 relief, while the House of Representatives stood ready for a second day to move a Democratic bill if talks fail.

The two sides appeared to be about $600 billion apart on spending, as lawmakers prepared to depart Washington for the final weeks of the 2020 presidential and congressional election campaign. Mnuchin has offered a proposal approaching $1.6 trillion. House Democrats were poised to vote on legislation containing $2.2 trillion in aid.

A bipartisan deal has been long delayed by disagreements over Democratic demands for aid to state and local governments and Republican assistance for a provision protecting businesses from coronavirus-related lawsuits.

Pelosi and Mnuchin met for 90 minutes in the U.S. Capitol on Wednesday and each emerged pledging to continue discussions.

Mnuchin raised hopes of an agreement by telling reporters that the discussions had made “a lot of progress in a lot of areas.”

Pelosi’s office was not immediately available for comment. But lawmakers and securities analysts viewed the day’s expected talks as a last-gasp effort to secure relief ahead of the Nov. 3 election for tens of millions of Americans and business including U.S. airlines, which were due to begin furloughing over 32,000 workers.

The Trump administration has proposed a $20 billion extension in aid for the battered airline industry, White House chief of staff Mark Meadows told reporters late on Wednesday. The extension would run for six months.

Mnuchin said separately that a deal would also include direct payments to American individuals and families.

Pressure for a deal has been mounting on the White House and Congress, from the devastating effects of a coronavirus pandemic that has infected more than 7.2 million people and killed over 207,000 in the United States.

The House was expected to vote on its $2.2 trillion Democratic package, a day after initial plans for action were delayed to give more time for a deal to come together.

Senate Majority Leader Mitch McConnell, who has not participated directly in the negotiations, said on Wednesday that the House bill’s spending total was too high.

(Reporting by David Morgan; Editing by Scott Malone and Chizu Nomiyama)

U.S. House pauses vote on bill to fund government and avoid shutdown

WASHINGTON (Reuters) – The U.S. House of Representatives put on hold an expected Tuesday vote on a bill to fund the government through Dec. 11, while bipartisan congressional leaders discussed whether to include farm aid sought by President Donald Trump, lawmakers and aides said.

The delay “relates to numerous agriculture provisions” in the bill, one Democratic aide said. With government funding lapsing on Sept. 30, House Democrats announced Monday they had filed the stopgap funding legislation, but they angered Republicans by leaving out some farm money that Trump wanted.

The bill generally continues current spending levels, avoiding a government shutdown when funding runs out on Sept. 30. It would give lawmakers more time to work out spending through September 2021, including budgets for military operations, healthcare, national parks, space programs, and airport and border security.

“At some point in the next day or two, we expect that there will be a continuing resolution on the floor that will continue the current spending agreement until December,” said Representative Hakeem Jeffries, chairman of the House Democratic caucus, who have the majority. He said he hoped it would be “bipartisan in nature.”

The version that House Democrats filed on Monday did not include $21.1 billion that the White House sought to replenish the Commodity Credit Corporation, a program to stabilize farm incomes, because Democrats considered it a blank check for political favors. Trump had promised more farm aid during a rally in Wisconsin last week.

Republicans protested the omission, with Senate Majority Leader Mitch McConnell arguing that farmers need the help.

“The talks continue, and hopefully we’ll reach an agreement,” McConnell told reporters on Tuesday.

A House Republican aide said Democrats had earlier walked away from an agreement that included the farm aid.

“Republicans will continue to fight for these provisions to be included,” he said.

Leaders of both parties say they are not interested in a standoff that could lead to a government shutdown, amid a pandemic and just weeks before the Nov. 3 elections.

(Reporting by Susan Cornwell; additional reporting by Richard Cowan and David Morgan; Editing by Steve Orlofsky and Bernadette Baum)

House Democrats file bill to fund U.S. government but leave out new farm money

By Richard Cowan and Susan Cornwell

WASHINGTON (Reuters) – The

By Richard Cowan and Susan Cornwell

WASHINGTON (Reuters) – The U.S. Congress this week will consider legislation funding the federal government through mid-December, with lawmakers hoping to avoid the spectacle of a government shutdown amid a pandemic and just weeks before the Nov. 3 elections.

House Democrats announced Monday they had filed the legislation, which leaves out new money that President Donald Trump wanted for farmers. A Democratic aide said the bill could be on the House floor as soon as Tuesday. The Senate could then act later this week.

The new federal fiscal year starts on Oct. 1.

The bill is designed to give lawmakers more time to work out federal spending for the period through September 2021, including budgets for military operations, healthcare, national parks, space programs, and airport and border security.

The spending proposal “will avert a catastrophic shutdown in the middle of the ongoing pandemic, wildfires and hurricanes, and keep government open until December 11, when we plan to have bipartisan legislation to fund the government for this fiscal year,” House Speaker Nancy Pelosi said in a statement.

But the measure’s December end date will require Congress to return to the government funding question again during its post-election lame-duck session, either during or after what could be a bruising fight to confirm Trump’s third Supreme Court nominee after the death of Supreme Court Justice Ruth Bader Ginsburg.

And the legislation does not include $21.1 billion the White House sought to replenish the Commodity Credit Corporation, a program to stabilize farm incomes, because Democrats considered this a “blank check” for “political favors,” said a House Democratic aide who asked not to be named. Trump promised more farm aid during a rally in Wisconsin last week.

Republicans were not happy. “House Democrats’ rough draft of a government funding bill shamefully leaves out key relief and support that American farmers need. This is no time to add insult to injury and defund help for farmers and rural America,” Senate Majority Leader Mitch McConnell wrote on Twitter. Republicans could seek to amend the document to add in the provision.

The bill proposes spending $14 billion to shore up a trust fund that pays for airport improvements and air traffic control

operations. It also proposes extending surface transportation funding for another year, directing $13.6 billion to maintain current spending levels on highways and mass transit.

Pelosi said the bill would also save America’s older citizens from an increase in Medicare health insurance premiums of up to $50 per month.

Congressional Democrats have had a stormy relationship with the White House over federal funding since Trump took office early in 2017. He has sought deep cuts in domestic spending while ramping up military funds.

(Reporting by Richard Cowan and Susan Cornwell; additional reporting by David Shepardson and Doina Chiacu; Editing by Scott Malone and Steve Orlofsky)

this week will consider legislation funding the federal government through mid-December, with lawmakers hoping to avoid the spectacle of a government shutdown amid a pandemic and just weeks before the Nov. 3 elections.

House Democrats announced Monday they had filed the legislation, which leaves out new money that President Donald Trump wanted for farmers. A Democratic aide said the bill could be on the House floor as soon as Tuesday. The Senate could then act later this week.

The new federal fiscal year starts on Oct. 1.

The bill is designed to give lawmakers more time to work out federal spending for the period through September 2021, including budgets for military operations, healthcare, national parks, space programs, and airport and border security.

The spending proposal “will avert a catastrophic shutdown in the middle of the ongoing pandemic, wildfires and hurricanes, and keep government open until December 11, when we plan to have bipartisan legislation to fund the government for this fiscal year,” House Speaker Nancy Pelosi said in a statement.

But the measure’s December end date will require Congress to return to the government funding question again during its post-election lame-duck session, either during or after what could be a bruising fight to confirm Trump’s third Supreme Court nominee after the death of Supreme Court Justice Ruth Bader Ginsburg.

And the legislation does not include $21.1 billion the White House sought to replenish the Commodity Credit Corporation, a program to stabilize farm incomes, because Democrats considered this a “blank check” for “political favors,” said a House Democratic aide who asked not to be named. Trump promised more farm aid during a rally in Wisconsin last week.

Republicans were not happy. “House Democrats’ rough draft of a government funding bill shamefully leaves out key relief and support that American farmers need. This is no time to add insult to injury and defund help for farmers and rural America,” Senate Majority Leader Mitch McConnell wrote on Twitter. Republicans could seek to amend the document to add in the provision.

The bill proposes spending $14 billion to shore up a trust fund that pays for airport improvements and air traffic control

operations. It also proposes extending surface transportation funding for another year, directing $13.6 billion to maintain current spending levels on highways and mass transit.

Pelosi said the bill would also save America’s older citizens from an increase in Medicare health insurance premiums of up to $50 per month.

Congressional Democrats have had a stormy relationship with the White House over federal funding since Trump took office early in 2017. He has sought deep cuts in domestic spending while ramping up military funds.

(Reporting by Richard Cowan and Susan Cornwell; additional reporting by David Shepardson and Doina Chiacu; Editing by Scott Malone and Steve Orlofsky)

Senate to vote on Republican coronavirus aid bill opposed by Democrats

By Richard Cowan

WASHINGTON (Reuters) – The U.S. Senate was set to vote on Thursday on a Republican bill providing around $300 billion in new coronavirus aid, far below the $3 trillion Democrats insist is needed to stimulate an ailing economy and help people struggling through the pandemic.

In what could be the final vote on coronavirus relief in Congress before the Nov. 3 presidential and congressional elections, Republicans and Democrats appeared to be deadlocked over the next steps in responding to a virus that has killed more than 190,000 people in the United States and nearly 900,000 globally.

If Senate Majority Leader Mitch McConnell fails, as expected, to get the 60 votes needed in the 100-member chamber to advance his latest bill, lawmakers will likely focus on wrapping up other work within the next couple weeks so they can return to their home states to campaign for re-election in November.

Earlier this year, Congress quickly passed four major bills providing about $3 trillion to respond to the COVID-19 crisis. The Democratic-controlled House of Representatives passed a bill in May that would provide another $3 trillion in aid. But gridlock has since prevailed.

Some Republican senators expressed doubts on Wednesday that a compromise coronavirus bill would emerge quickly if McConnell’s latest “skinny” bill is rejected on Thursday in the Republican-controlled chamber.

“There’s always some possibility,” said Senator Richard Shelby, adding: “Unless something really broke through, it’s not going to happen.”

The Republican bill would renew a federal unemployment benefit, but at a lower level than Democrats sought. It also would set new protections for businesses against liability lawsuits during the pandemic, which Democrats have labeled a “poison pill.”

An array of other initiatives, including aid to state and local governments, a second round of direct federal payments to households and bailouts for U.S. airlines during the economic downturn were not addressed in the Republican bill and could be considered in a possible post-election session of Congress.

(Reporting by Richard Cowan; Editing by Scott Malone and Peter Cooney)

Senate to vote on COVID-19 aid as soon as this week: McConnell

WASHINGTON (Reuters) – The Republican-led U.S. Senate will introduce a new proposal on coronavirus relief legislation on Tuesday and could schedule a vote as soon as this week, Senate Majority Leader Mitch McConnell said.

He said the new proposal would target “some of the very most urgent healthcare, education, and economic issues.”

“It does not contain every idea our party likes. I am confident Democrats will feel the same. Yet Republicans believe the many serious differences between our two parties should not stand in the way of agreeing where we can agree and making law that helps our nation,” McConnell’s statement said.

Earlier, White House chief of staff Mark Meadows said he was hopeful there would be another round of federal COVID-19 stimulus funding before the Nov. 3 presidential election, but signaled no breakthrough in talks with congressional Democrats.

Interviewed on Fox Business Network, Meadows said he hoped legislation put forward by Senate Republicans would provide a basis for a future agreement with Democratic lawmakers and that negotiations were ongoing.

(Reporting by Susan Heavey and Doina Chiacu; Editing by Howard Goller)

U.S. House votes to block Postal reforms seen as threat to mail-in ballots

By David Morgan

WASHINGTON (Reuters) – The Democratic-led U.S. House of Representatives voted on Saturday to provide the cash-strapped Postal Service with $25 billion and block policy changes that have stirred concerns about mail-in balloting ahead of the Nov. 3 election.

The 257-150 vote sent the legislation dubbed the “Delivering for America Act” on to the Republican-controlled Senate. But Senate Majority Leader Mitch McConnell said in a statement that the Senate would “absolutely not pass” the stand-alone bill.

The White House also strongly opposes the legislation and has said it would recommend that President Donald Trump veto the measure.

But more than two-dozen House Republicans broke ranks to join Democrats in approving the bill, during a rare Saturday session called by House Speaker Nancy Pelosi in the middle of the congressional August recess.

With mail-in voting expected to surge during the coronavirus pandemic, Trump has alarmed Democrats by repeatedly denouncing mail-in ballots as a possible source of fraud. Postmaster General Louis DeJoy recently suspended cost-cutting measures that have slowed deliveries in recent weeks.

Democrats, who accuse Trump of trying to discourage mail-in balloting to gain an electoral advantage over Democratic presidential nominee Joe Biden, cast themselves as defenders of a public that relies on the Postal Service for vital deliveries, including prescription drugs.

“The American people do not want anyone messing with the Post Office. They certainly do not want it to be politicized. They just want their mail, they want their medicines and they want their mail-in ballots delivered in a timely way. And that is exactly what our bill does,” said Democratic Representative Carolyn Maloney, who authored the legislation.

Maloney also released a Postal Service document showing an 8% slowdown in the processing of first class mail, most of it occurring after DeJoy became postmaster in June.

Republican leaders denied that the Postal Service was in any danger and criticized Democrats for moving legislation forward before DeJoy could testify at a House hearing slated for Monday.

“This is the result of a legislative process only slightly less absurd than the conspiracies, insinuations and fabrications that gave rise to the purported need for it,” said Republican Representative James Comer.

The 26 Republicans who supported the measure represented more than one in 10 House Republican members. Another 23 Republicans did not vote.

As lawmakers prepared to vote, Trump took to Twitter to accuse Pelosi and Senate Democratic leader Chuck Schumer of seeking unnecessary funding for the Postal Service and trying to pull off a “Universal Mail-In Ballot Scam.”

“Vote NO to the Pelosi/Schumer money wasting HOAX which is taking place now,” the president wrote.

DeJoy told a Senate committee on Friday that the Postal Service would deliver ballots “securely and on time” in the November election but said bigger changes could come after that.

In fact, the House bill would prevent DeJoy from taking any action that would impede service until after next January or the end of the coronavirus health emergency, whichever comes later.

“Our legislation is not just about the election. It’s about – surprise, surprise, Mr. Postmaster General – the coronavirus!” Pelosi told a news conference.

Pelosi insisted that congressional action is necessary, calling DeJoy’s assurances ambiguous and unsatisfactory. “His comments are one thing. His actions will be another. And that’s why we have this legislation,” she said.

She said Trump’s attacks on mail-in voting were part of a larger effort to suppress voting that also includes his recent call for law enforcement officers to monitor voting at polling places.

(Reporting by David Morgan; Additional reporting by Jan Wolfe; Editing by Andy Sullivan, Alistair Bell, Aurora Ellis and Daniel Wallis)

Not in the room where it happens: U.S. Senate’s McConnell opts out of coronavirus talks

By Richard Cowan

WASHINGTON (Reuters) – As coronavirus aid negotiations between top White House officials and Democratic leaders in the U.S. Congress bogged down over the past week, the question reverberating through near-empty Capitol hallways has been “Where’s Mitch?”

That’s Mitch McConnell, the Senate majority leader with the reputation of being a legislative mastermind and a tough, wily deal-maker.

McConnell, a Republican like President Donald Trump, said on Tuesday he is deliberately hanging back as Congress’s top Democrats and White House negotiators work out a deal to help American families stay afloat during severe economic times caused by the coronavirus pandemic.

If they reach a deal, he said, it would be “something I’m prepared to support even if I have some problems with certain parts of it.”

Unlike in past showdowns over spending and borrowing authority bills, McConnell would not bring a strong hand to negotiations – his party’s 53-member majority in the 100-seat Senate is deeply fractured over his $1 trillion package, with dissenters expected no matter what emerges from the talks.

The betting is that Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows could have an easier time without McConnell in the room as they try to craft a bill that will need Democratic support for passage anyway.

An arm’s-length appearance could also help deflect fallout if this legislative battle ends poorly, something that could be on his mind as he seeks to retain his seat in congressional and presidential elections in November.

That’s not to say that McConnell has gone AWOL. While he may not be in the sessions, he is in close touch with the White House behind the scenes.

“He’s definitely giving guidance,” Senator Bill Cassidy told Reuters on Tuesday. “Clearly Mnuchin and his team are the ones negotiating directly. But I certainly get a sense that they’re going in there knowing that which McConnell will accept and that which he will not.”

Senator Mike Rounds called McConnell’s approach pragmatic.

“In the past he’s made it clear that unless you have House Democrats on board and you have the White House on board, you’re really not going to get to a conclusion,” Rounds told reporters.

‘WE DO HAVE DIVISIONS’

Unlike the wall of opposition Republicans erected against former President Barack Obama’s landmark healthcare law, or the party’s lockstep backing for tax cuts, many Republicans are leery of spending more to battle COVID-19 — despite the virus’ impact on Americans’ lives and America’s economy.

McConnell’s pledge to support a deal, even as he keeps a low profile, could anger conservative Republican senators who have questioned whether Washington should do anything beyond the $3 trillion it already has passed to battle the fallout from the pandemic, which has killed more than 157,000 nationwide.

“We do have divisions,” McConnell acknowledged in his understated way.

In contrast, Democrats led by House of Representatives Speaker Nancy Pelosi and Senate Democratic Leader Chuck Schumer have presented a unified front around a $3 trillion proposal passed by the House in May.

On Tuesday, Schumer suggested McConnell had lost control of his caucus: “He’s not in the room negotiating because the Republicans can’t even articulate a coherent position.”

The Senate is being pressured from many sides to act on what could be the last piece of major legislation before election day on Nov. 3.

Trump, who has been trailing in polls versus presumptive Democratic nominee Joe Biden, repeatedly has called for steps to extend unemployment insurance or help those facing eviction from their homes, which Democrats have been pressing for months.

The U.S. Chamber of Commerce on Tuesday also urged action to protect businesses from liability lawsuits during the pandemic — McConnell’s main priority.

Former Republican House Speaker John Boehner always had a ready answer when he found himself, like McConnell now, in a tight spot.

“A leader without followers is simply a man taking a walk,” he would say during raucous times during his tenure.

Now, McConnell may have found himself in Boehner’s shoes.

(Reporting by Richard Cowan, David Morgan and Patricia Zengerle; Editing by Scott Malone and Sonya Hepinstall)