Steve Mnuchin: Economy Will Bounce Back Quickly In July, August
Treasury Secretary Steve Mnuchin predicted that the American economy will bounce back in significant fashion in the summer months during an appearance on Fox News with Chris Wallace on Sunday, citing the significant significant relief the federal government has spent to stimulate the economy in the midst of the coronavirus recession.
“I think as we begin to reopen the economy in May and June, you’re going to see the economy really bounce back in July, August, September,” Mnuchin predicted. “And we are putting in a unprecedented amount of fiscal relief into the economy. 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.”
Mnuchin had acted as the Trump administration’s point man in securing the passage of the $2 trillion CARES Act coronavirus stimulus, providing significant cash relief to small businesses dealing with the fallout of the unprecedented situation, as well as providing a $1,200 TrumpBux payment to most Americans who reported less than $75,000 of income on their 2018 or 2019 tax return.
Mnuchin rejected a comparison of the current coronavirus recession to the 2007 financial crisis, pointing out the situation was a result of a phenomenon that is medical, not economic. The Treasury Secretary predicted that the nation’s economy would respond to reopening in opposite form as it reacted to its closure in March as a result of the spreading virus.
“My own opinion is, again, we have unprecedented amount of liquidity in the system,” Mnuchin argued. “We’re very sympathetic to all the people that are out of work. But there is enhanced unemployment, there’s the PPP, there’s direct deposits. This is going to put a lot of liquidity. And as businesses begin to open, you’re going to see demand side of the economy rebound.”