Mnuchin: Relief Efforts Now Should Show Results In Summer

Treasury Secretary Steve Mnuchin remains in good spirits over the U.S.’s economic future as summer approaches, saying the financial aid efforts thus far should help things bounce back in the long run.

Mnuchin said the aid, including the $2 trillion CARES Act from March and the $484 billion bill passed last week, would yield positive results in July and onwards.

Talking with “Fox News Sunday,” Mnuchin also posited that the economy would begin to reopen during May and June, and then that would lead to the economic recovery.

He said the amount put into the economy thus far, to offset the tumultuous effects of the pandemic, was “unprecedented.” He included the funds from the Paycheck Protection Program (PPP) to go towards small businesses, individual stimulus checks and the heightened unemployment benefits for individuals.

“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,” he said on “Fox News Sunday.” However, he conceded that the predictions were all based on health concerns and any re-openings would have to be taken at a cautious pace.

But he said the recovery, when it came, would be swift and the demand would get back to what it once was.

In saying all of this, Mnuchin seemed to downplay the predictions of the Congressional Budget Office and Goldman Sachs, who forecast a global impact much more serious than that of the 2008 Great Recession.

In addition, some state officials like New York Gov. Andrew Cuomo have criticized the federal government for leaving states in the dust. Senate Majority Leader Mitch McConnell has argued that states won’t need any more financial aid. In McConnell’s opinion, states in need of additional funds can apply for bankruptcy.

Mnuchin has taken a measured response to that debate, saying the government would spend more money if it had to, but only if there was broad bipartisan support for the idea.