UPDATED 12:45 PM PT — Sunday, May 10, 2020
According to Treasury Secretary Steven Mnuchin, his department and the Federal Reserve are preparing a new round of coronavirus related stimulus. On Sunday, he announced the new relief package could amount to $3 trillion going into the economy.
The secretary noted he’s focused on reversing the devastating effects that the pandemic has had on the country and getting the economy back to where it was.
“We’re working with the Federal Reserve on close to another $3 trillion of facility and liquidities. These are all beginning to have a very positive impact, so the president has said and wants to make sure before we rush back, do the next bill and spend more taxpayer money. We just want to be thoughtful, so there’s a lot of things we’re considering that are on the table.” – Steven Mnuchin, Secretary of the U.S. Treasury
Additional stimulus will be unveiled in the coming weeks.
Mnuchin has also said the country’s unemployment rate is expected to peak before sharply going down.
During a recent interview, he stated the unemployment rate could rise to as high as 25 percent this quarter. At least half of the workforce has reportedly been affected by coronavirus shutdowns, which in turn hurt supply chains and long-term economic activity.
The U.S. economy has shed 20.5 million jobs so far. Business owners across the country are now calling for more support to keep them afloat.
“To keep it going, you can’t afford to pay people when people aren’t spending money. It sets a trickledown effect: you have money, you spend it, it boosts the economy. If there is no money coming down to people’s pockets, they can’t spend it, so how do you expect to pay your employees?” – Unnamed resident
According to Mnuchin, relief money is already going into the economy and paving way for a gradual recovery starting this quarter.