Treasury Secretary Steve Mnuchin and his views on Economy

Treasury Secretary Steve Mnuchin and his views on Economy

Steve Mnuchin, Treasury Secretary, talked with CNBC. He discussed shutting down the economy for a second time to slow Covid-19. Mnuchin thinks that it is not a viable option. It could potentially cause more headaches for Americans in the long run.

Moreover, Wall Street is concerned about the second wave of coronavirus cases in the United States.

Mnuchin said that he is prepared to return to Congress. He wants to request additional fiscal spending to help aid the economy if needed.

Wall Street has recently grown even more concerned about the second wave of coronavirus cases in the United States. For example, Texas reported three consecutive days of record-breaking Covid-19 hospitalizations. Meanwhile, nine California countries are reporting a spike in new admissions for coronavirus, along with the number of cases. That is what AP reported on Wednesday.

Mnuchin had an interview with CNBC’s Jim Cramer of CNBC on “Squawk on the Street.” He said that they could not shut down the economy again. Mnuchin thinks they have learned already that if you shut down the economy, then you are going to create more damage.

Moreover, it will not only be economic damage. However, there are other areas, which they did not discuss in detail: medical problems and everything else that gets put on hold. Mnuchin thinks it was very prudent, regarding what the president did. Nevertheless, they have learned a lot from that experience.

Steve Mnuchin and His views

The rise in cases that came during the United States‘ reopening efforts has made investors nervous. They are worried because they think states might have to reimpose business closures and once again try to slow the spread of coronavirus. On Thursday morning, that pessimism contributed to the Dow Jones Industrial Average’s 800-point slide. Moreover, the S&P 500 lost 2.6%.

economy

Stocks that will most likely benefit the most under the total United States reopening led the losers. For example, Gap shredded 6.6%, United Airlines was down by 10%, and cruise operator Carnival lost 8.8%.

Mnuchin said that they have the Federal Reserve program. They also have a lending program (Main Street). It is going to be up and running very soon now. Moreover, they are prepared to go back to Congress for more money to finance such projects. They intend to ask for loans to support American workers. As one can glean from this answer, they want to get everybody back to work. That is Mnuchin’s number one job while working with the president. He claims that they will accomplish this goal.

Last month, House Democrats passed a $3.5 trillion stimulus bill. That bill is known as the HEROES Act. This bill would prolong jobless benefits through to the end of 2020. They provide relief for states and cities that have seen a marked drop in tax revenues. Senate Republicans have optioned for a wait-and-see approach and are awaiting more data. They were waiting for something along the lines of last Friday’s surprisingly positive jobs report. These reports came out before voting for widening the federal deficit.

Let us see what will happen.