New York Times: “Mr. Trump’s approach to the negotiations over another round of federal stimulus for the ailing economy has confounded allies, rivals and outside observers. He pushed hard for big-ticket tax cuts that Senate Republicans did not want, along with $1.75 billion to rebuild the F.B.I.’s headquarters in Washington and an expanded tax break for business lunches. And he has derided efforts to find middle ground with Democratic leaders on a comprehensive economic rescue package, declaring on Wednesday that ‘we really don’t care’ about several possible parts of it.”

“Lobbyists, economists and members of Congress say they are baffled by Mr. Trump’s shifting approach and apparent lack of urgency to nail down another rescue package that he can sign into law.”

The U.S. economy contracted at a record 32.9% annual rate in the second quarter, CNBC reports.

New York Times: “The collapse was unprecedented in its speed and breathtaking in its severity. The only possible comparisons in modern American history came during the Great Depression and the demobilization after World War II, both of which occurred before the advent of modern economic statistics.”

“President Trump brushed off the new $1 trillion Senate GOP coronavirus legislation as ‘sort of semi-irrelevant’ Tuesday, dismissing its significance just a day after Senate Republican leaders overcame contentious internal divisions to roll it out,” the Washington Post reports.

Bloomberg: “Data due Thursday are forecast to show U.S. gross domestic product plummeted an annualized 34.8% in the second quarter, the most in records dating back to the 1940s, after the spread of Covid-19 prompted Americans to stay home and states to order widespread lockdowns.”

A new CNBC/Change Research poll finds most voters in six key swing states support an extension of the $600 per week unemployment benefit, along with another direct payment and state and local government relief.

In addition, a majority of respondents also opposes shielding corporations from coronavirus-related lawsuits.

“One way or another, the economy is going to lock down again.”

— Paul Krugman, on CNN, saying we’ve squandered the chance to actually bring the coronavirus under control.

Washington Post: “Senate Republicans’ coronavirus relief proposal came under attack from a coalition of hunger advocates Tuesday for not extending funding for food assistance programs, despite rising demand during the pandemic.”

“Although the Senate GOP proposal offers no new funds for SNAP and Pandemic EBT, it does double the tax deduction for business meals, known as the ‘three-martini-lunch deduction,’ increasing the reimbursement from 50% to 100% of meals.”

“The US economy is emerging from what experts think will be its worst quarter on record,” CNN reports.

“Although that’s behind us now and conditions have improved since the country ground to a halt in April, the recovery remains fragile and could ultimately disappoint hopeful economists.”

Playbook: “High-stakes legislative debates aren’t always battles of ideas. They don’t necessarily test the power of persuasion. They’re staring contests between powerful political leaders who are trying to humiliate their opponents, and squeeze as much out of them as possible while seeking to achieve a political and policy victory that’s palatable to the majority of their internal constituency — their colleagues — and their external constituency, the voters.”

“No one excels at these affairs like Senate Majority Leader Mitch McConnell and Speaker Nancy Pelosi — the respective party leaders. And no one has watched from the sidelines and admired the negotiating game — and longed to get in it — like Mark Meadows, the former House Republican from North Carolina and current White House chief of staff.”

“Washington is now kicking off what’s shaping up to be a real cliffhanger over another round of coronavirus relief 98 days before Election Day.”

Key takeaway: “The general consensus of aides in both parties, on both ends of Pennsylvania Avenue, is that Democrats have a healthy negotiating edge.”

White House economic adviser Larry Kudlow told Fox Business that the forthcoming coronavirus relief package from Republicans will include “increased business deductions for meals and entertainment.”

“Senate Republicans propose cutting supplemental unemployment benefits to $200 weekly from $600 until states are able to create a system that would provide 70% of a laid-off worker’s previous pay,” Bloomberg reports.

“The plan, which was agreed to by the Trump administration, calls for a two-month transition and then allows states to apply for a waiver for up to two additional months if they can’t implement the new calculation.”

“Google will keep its employees home until at least next July, making the search-engine giant the first major U.S. corporation to formalize such an extended timetable in the face of the coronavirus pandemic,” the Wall Street Journal reports.

“Federal Reserve officials meet Tuesday and Wednesday facing growing doubts about the prospect for a sustained economic rebound due to the nation’s uneven public-health response to the coronavirus,” the Wall Street Journal reports.

“Officials have warned this month in speeches and interviews that the economy faces a deeper downturn and more difficult recovery if the country doesn’t take more effective action to slow the spread of infection.”

Playbook: “We said last week the leverage here isn’t clear to us. But it’s becoming clearer. Sen. Lindsey Graham (R) said Sunday on Fox’s ‘Sunday Morning Futures’ that half of the GOP will vote against whatever the leadership comes up with. If that’s true, Democrats hold the keys.”

“President Trump’s top economic advisers say they still expect a rapid economic recovery despite surges in new coronavirus infections that have rattled consumers and led to new limits on business activity,” the Wall Street Journal reports.

Said White House economic adviser Larry Kudlow: “I still think the V-shaped recovery is in place. I don’t deny that some of these hot-spot states are going to moderate that recovery, but on the whole the picture is very positive.”