Coronavirus News Asia

Mnuchin predicts US economic ‘bounce back’


US Treasury Secretary Steven Mnuchin insisted Sunday the US economy will come roaring back even amid warnings from another White House adviser of longer-term impacts of the coronavirus pandemic’s unprecedented shock to the economy.

Mnuchin’s upbeat assessment came amid skyrocketing unemployment figures and forecasts predicting a deep contraction in economic activity this year.

In an interview with Fox News Sunday, Mnuchin defended the soaring deficit spending as key to reviving the economy, even amid rising signs of Republican pushback in Congress.

In a related aside, he said the administration was considering loans to troubled energy companies, but insisted there would be no shareholder bailouts.

“I think as we begin to reopen the economy in May and June you’re going to see the economy really bounce back in July, August, September,” he said.

“And we are putting in an unprecedented amount of fiscal relief into the economy. You’re seeing trillions of dollars that’s making its way into the economy, and I think this is going to have a significant impact.”

Congress this week passed a new $483 billion economic relief bill, adding to the massive $2.2 trillion emergency package passed in mid-March.

Another big package, this one for struggling state and local governments, is under discussion.



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