U.S. Treasury Secretary Steven Mnuchin on Tuesday defended the Trump administration’s fiscal response to the coronavirus pandemic and told senators he was willing to consider extending and modifying a payroll loan program for small businesses.
In a sometimes testy hearing before the Senate Banking Committee, Mnuchin and Federal Reserve Chair Jerome Powell said the nearly $3 trillion in coronavirus rescue programs rolled out by the federal government over the past two months were working to support an economy devastated by the novel coronavirus.
But the Treasury and Fed chiefs faced tough questions over whether the administration’s plans to quickly reopen the economy in the wake of lockdowns imposed in March and April would leave low-wage workers without adequate protections from the virus.
Congress is considering legislation that would free up trillions of dollars of additional aid to further bolster the economy, help states and increase pay for essential workers who are doing some of the most dangerous jobs.
President Donald Trump has been criticized for initially downplaying the pandemic, which has now killed more than 90,000 Americans, and not ensuring that enough medical supplies were in place to battle the virus.
“How many workers should give their lives to increase the GDP or the Dow Jones by 1,000 points?” asked Senator Sherrod Brown, the committee’s top Democrat.
“No workers should give their lives to do that, senator, and I think your characterization is unfair. We have provided enormous amounts of equipment,” Mnuchin replied.
Mnuchin said he wanted to thank “all the essential workers,” but Brown interrupted him, adding, “Thanking is great, but is it fair our economy pays the essential workers so little in such work conditions?”
Powell said new Treasury-backed Fed lending programs aimed at mid-size companies and municipal bond markets would be up and running by the beginning of June. Only a “fairly modest” amount of money has gone out through the Fed credit programs so far.
The U.S. central bank has slashed interest rates to near zero and set up a broad network of programs to ensure financial markets continue to function during the pandemic. It has also established precedent-setting lending facilities for companies and the first-ever corporate bond purchases.
Source : Reuters