Great time for long-term investors to put money into U.S.- Mnuchin

Andrew Cummings
April 3, 2020

Treasury Secretary Steve Mnuchin speaks with reporters about economic impacts of the coronavirus outside the White House, Sunday, March 29, 2020, in Washington.

He added, "I do know we will kill this virus, and when we do, I have great confidence the economy will become roaring back".

Mnuchin said he anticipated at least a "rough" second quarter for the USA economy from lockdowns that the authorities have imposed and President Donald Trump said will last until the end of April.

Mnuchin said the $2.2 trillion rescue package and another $4 trillion in liquidity from the Federal Reserve would help the country weather the next eight to 12 weeks.

Unlike the Troubled Asset Relief Program, where the Treasury compelled banks to beef up their capital during the financial crisis, Mnuchin told CBS, "We are not going to force money on any companies".

Mnuchin backed that assertion, saying, "We're ready to work with Congress if we need more enhancements or additional funds".

Single taxpayers earning up to $75,000 a year are expected to get $1,200 each as part of the relief bill signed into law last week.

"The first component is small business loans, which about half of the companies in the USA, people will be able to get small business loans and pay their workers for eight weeks, so we encourage people to do that and get them back to work", Mnuchin said.

He also had a message for small businesses: "Go back and hire your workers because the government is paying you to do that".

Mnuchin said that there has not been a recommendation on when that might happen and insisted: 'The president wants to make sure that we kill this virus'.

It will result in individual checks being sent to Americans, loans going to small businesses and aid for industries hard hit by the coronavirus.

The direct cash payments will begin phasing out for individuals with adjusted gross incomes of more than $75,000.

Three million people filed claims between March 14 and March 21, according to a report that was released by the Department of Labor on Thursday morning.

Other reports by iNewsToday