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US Treasury Secretary considers re-halting economy unacceptable

Rebuilding the Global Economy: Role of the US Treasury Department

US Treasury Secretary considers re-halting economy unacceptable

Stephen Mnuchin told CNBC on Thursday that shutting down the economy a second time to combat the spread of Covid-19 is not a viable option and could cause even more problems for American society..

His comments came as concerns about a second wave of coronavirus cases in the United States are growing on Wall Street. Texas reports three consecutive days of record Covid-19 hospitalizations, while nine California counties report a spike in new cases or hospitalizations of confirmed cases, AP told Wednesday..

«We cannot shut down the economy again. I think we’ve learned that if you shut down the economy, you will do even more damage.», – said Stephen Mnuchin in an interview with CNBC Jim Kramer on air transmission “Squawk on the Street”.

«And not only economic damage, but other areas as well, and we talked about this: health problems and everything else that was suspended», – he added. «I think what the president did was very sensible, but I think we learned a lot.».

The increase in the number of cases against the background efforts to revive the U.S. economy have made investors nervous that states may have to restart business closures to try again to slow the spread of the coronavirus. This pessimism drove the Dow Jones Industrial Average down 800 points on Thursday morning and cost S&P 500 loss 2.6%.

US Treasury Secretary considers re-halting economy unacceptable

Mnuchin also said he was ready to return to Congress to request additional budgetary allocations to help the economy if needed..

«We have the Fed program, we have the Main Street (loan program) that is going to be fully operational now, and we are ready to return to Congress to get more money to support the American worker.», – he said. «So we’ll get everyone back to work. This is my first job with the President and we are going to do it.».

The House of Democrats last month passed a $ 3.5 trillion stimulus bill known as «Hero Law» (HEROES Act), which will extend unemployment benefits payments until the end of 2020 and provide assistance to cities and states that are experiencing notable declines in tax revenues. Senate Republicans have opted for a wait-and-see approach before voting for an increase in the federal deficit and are awaiting more data such as last Friday’s better-than-expected jobs report.

The Democrats’ bill will be in addition to the $ 2 trillion CARES Act, which the president Donald Trump signed in march.