US president Donald Trump has abruptly broken off talks with congressional Democrats on a new economic stimulus package until after next month’s presidential election.

“Nancy Pelosi is asking for $2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19. We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith,” Mr Trump wrote in a tweet on Tuesday.

“I am rejecting their . . . request, and looking to the future of our Country. I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” he added.

The news caused a sharp reversal in the US stock markets, which fell into the red after the tweet.

Ms Pelosi, the Democratic speaker of the House of Representatives, had been negotiating a possible deal with Steven Mnuchin, the US Treasury secretary, for days.