Kevin McCarthy says Democrats' COVID-19 bill would harm market

U.S. House Minority Leader Kevin McCarthy speaks to reporters in the U.S. Capitol in Washington, U.S. July 29, 2020. /Reuters

U.S. House Minority Leader Kevin McCarthy on Friday said the Democratic legislation on COVID-19 relief would undermine the stock market is enacted into law.

"If we went forward with what the Democrats asked for in that $3 trillion? I believe the market would drop hard because it would put greater debt on all taxpayers," Reuters quotes McCarthy.

The Democratic-led House approved COVID-19 legislation in May worth more than $3 trillion but have since offered to reduce the sum by $1 trillion to get a deal with the White House and Republicans. White House negotiators have rejected the offer.

McCarthy's remarks come as President Donald Trump also accused Democrats of holding up the COVID-19 relief.

"I am ready to send more money to States and Local governments to save jobs for Police, Fire Fighters, First Responders, and Teachers. DEMOCRATS ARE HOLDING THIS UP!" said Trump on Twitter.

Democrats have however called the president's move to sign executive orders on COVID-19 relief a pre-election ploy that is not going to deliver real results for Americans in financial distress.