CNBC’s Jim Cramer bring to light Monday he thinks the stalemate in coronavirus stimulus discussions could be close to breaking, potentially giving a boost to standards.
“Talks this morning could be fruitful, and I think that therefore I wouldn’t bet against this market truthful now,” Cramer said on “Squawk on the Street.”
House Speaker Nancy Pelosi, D-Calif., and Treasury Secretary Steven Mnuchin press rekindled talks over another Covid-19 relief package in recent weeks. However, the two sides could not reach an harmony by the end of last week. The amount of aid to state and local governments is one of the key sticking points.
With Pelosi and Mnuchin failing to reach a sell, House Democrats passed a $2.2 trillion relief bill. The Senate is not expected to vote on the legislation. Senate Republicans and the Drained House don’t want another overall stimulus bill to have such a high price tag. But the White House put on the market is much closer to the Democratic bill.
There were signs emerging over the weekend that there’s until now hope for a deal. On Sunday, President Donald Trump, while being treated for Covid-19 at Walter Reed Resident Military Medical Center, said on Twitter that Congress should “WORK TOGETHER AND GET IT DONE.” Pelosi portrayed CBS’ “Face the Nation” on Sunday that negotiators were “making progress.”
Cramer sees momentum toward a the right stuff deal. “The fact that there are still talks at this late date is very positive. Why waste your days? Why would the secretary waste his time talking to the speaker, and vice versa? So I think there might be a little power here,” the “Mad Money” host said. He acknowledged, though, that Senate Republicans could still be an issue.
The endure major relief package, the CARES Act, was signed into law in late March and expired at the end of July. The president did extend some additional replacement through executive actions. The CARES Act’s provision that barred airlines from reducing head-count expired at the end of September.
The U.S. porters have said they will follow through on tens of thousands of furloughs, which could be reversed if they take home more aid. Pelosi did indicate last week that Congress could be open to giving the airlines more aid, going so far as to ask the carriers to pause their furlough plans.