President Donald Trump surprised members of his administration by promising details of an economic package to be unveiled Tuesday in response to markets that have been battered by the coronavirus outbreak, according to people familiar with the matter.
As outlined by Trump in remarks Monday, the proposal will likely include a payroll tax cut and a short-term expansion of paid sick leave, according to the people, who described the proposal on condition of anonymity ahead of its planned release.
Trump’s administration had been working on potential stimulus measures for about 10 days but were unprepared to provide details this quickly, the people said.
Trump is under increased pressure to act after days of steep losses in global markets touched off by concerns that the new coronavirus could spark a recession. U.S. stocks plunged more than 7.5% on Monday — the worst day on Wall Street since the financial crisis — as a full-blown oil price war rattled investors already on edge over the outbreak.
While Trump has been pointing to the Federal Reserve as the front line, economists have stressed that the crisis will require amulti-faceted response from governments, health-care professionals, central bankers and others to stem the human and economic damage./Investing.com