USTR says the Coronavirus economic relief bill will help the U.S Fed to leverage £3.43 trillion liquidity

In an announcement on Sunday, United States’ Treasury Secretary (USTR) Steven Mnuchin highlighted that the U.S Congress is currently finalizing a Coronavirus economic relief bill that is expected to include around £2,500 payment (one-time) for families. The bill will also help the U.S Fed to leverage liquidity worth £3.43 trillion to support the U.S economy amidst the Coronavirus crisis.

The additional liquidity, according to Mnuchin, will be sufficient for the U.S Federal Reserve to offer financial support to businesses to survive in the upcoming three to four months.

Mnuchin Says Further Fiscal Measures May Be Required Later

He further added that the Trump Administration is looking forward to finalizing the bill on Sunday and put it up for voting on Monday. Mnuchin also said that further fiscal measures will still be required to support the U.S economy if the health emergency does not subside in the next ten to twelve weeks.

Mnuchin expressed confidence in Friday that despite a deep impact of the flu-like virus on the U.S economy, it is likely to recover quickly once the pandemic abates and business operations return to normal. According to Mnuchin:

“We need to get the money into the economy now. If we do that, we think we can stabilize the economy.”

When inquired about the probability of recession, Mnuchin branded it as a technical question that he didn’t see as quite relevant considering the circumstances since the U.S government, he said, is committed to shutting down several components of the economy to minimize the risk of Coronavirus. Mnuchin said:

“When people focus on recessions, it’s normally because of a prolonged economic environment. This is a very unique situation that we’ve never had before. This is the government has self-imposed shutting down large parts of the economy. And as soon as we can get the medical situation under control, we’re going to reopen it.”

Mnuchin Says The Virus Has Escalated Much Quickly Than Expected

Mnuchin refused to comment on a recent report by the Washington Post that the White House failed to strategize for the potential impact of the ongoing health emergency despite repeated warnings from the United States’ Intelligence. As per Mnuchin, the virus had escalated much quickly than expected.

“I don’t think that anybody should second guess the government’s actions. This has been moving very quickly and I think we’ve responded appropriately.”

The government, however, has been under criticism from various sources for being lethargic in preparing for the economic impact of Coronavirus as well as responding to it.