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Coronavirus aid bill includes $3,000 for families, $4 trillion liquidity for Fed: Mnuchin

Published 03/22/2020, 10:40 AM
Updated 03/22/2020, 09:40 AM
© Reuters. FILE PHOTO: President Trump addresses the Trump administration?s daily coronavirus (COVID-19) briefing  at the White House in Washington

WASHINGTON (Reuters) - The coronavirus economic relief bill being finalized by the U.S. Congress will include a one-time $3,000 payment for families and allow the Federal Reserve to leverage up to $4 trillion of liquidity to support the nation's economy, U.S. Treasury Secretary Steven Mnuchin said on Sunday.

Mnuchin, speaking on the "Fox News Sunday" television program, said the additional liquidity measures would allow the U.S. central bank to help a broad base of businesses to get through next 90 to 120 days.

Trump administration officials hoped to finalize the legislation on Sunday and see a vote on Monday, Mnuchin said, adding that further steps could be taken if the crisis did not abate in 10 to 12 weeks.

Mnuchin said the U.S. economy would clearly take a hit from the health crisis, but should rebound once the new coronavirus has been contained.

"We need to get the money into the economy now. If we do that, we think we can stabilize the economy," he said.

Nearly one in four Americans, or 80 million people, were under orders to close up shop and stay home as New York, California, Illinois, Connecticut and New Jersey instituted statewide lockdowns to try to contain the rapid spread of the highly contagious respiratory illness.

Mnuchin downplayed a question about a possible recession, calling it a "technical question" that was not "terribly relevant" in the current situation since the government was effectively shutting down large parts of the economy to slow the virus."

"When people focus on recessions, it's normally because of a prolonged economic environment," Mnuchin said. "This is a very unique situation that we've never had before. This is the government has self-imposed shutting down large parts of the economy. And as soon as we can get the medical situation under control, we're going to reopen it."

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Mnuchin declined to comment specifically about a Washington Post report that the Trump administration did not act on repeated warnings about the potential impact of the coronavirus from the U.S. intelligence community, but said no one expected the crisis to escalate as quickly as it had.

"I don't think that anybody should second guess the government's actions," Mnuchin said. "This has been moving very quickly and I think we've responded appropriately."

Many critics have said the administration has been slow in both its preparation and response to the crisis as President Donald Trump for weeks played down the situation before changing his tone more recently.

Latest comments

Hey, 3 grand is better than nothing
Don't need the money....just help me keep my job.
So....who is entitle to 2nd guess the government?
$3k is just the first one... with the hope that they will contain it in 120 days or so... if not expect another one... plus I pushed my mortgage back.. ppl can do the same with rent... push back till june.. ,y car note as well.... plus I still work 9-5... let's see how this plays out..
$4 trillion stimulus package but only 3,000 bucks for the common folk.
Man from Mars wants more, right? Never enough, is it kid . . .
dont u get tired of being nearly the only one on here still defending ur dumptuck?
No other country in the word give USD 3,000 to their people. Be grateful...
How 'bout those futures! Government calling for trillions only divulges weakness and vulnerability. Distinct threats of depression!
There's meds for that Ron. You should take yours...
Nobody should second guess the government's actions?? Allow me to be the first!
If you are listening to the news closely enough you will see this has turned into a political battle. Example: trump people will not provide details of how much is being delivered. trump playing the odds. as usual.
Im a staunch independent....this should been negotiated and approved by all three branches last week. They all need to go...Pick a random third grade class and let them lead. We will all come out much better on average.
Middle schoolers recognize basic economics. The commies caused this. Most thinking people realize this too. China wants to replace us, has now hurt us economically. If people continue to purchase their products, we will continue to fall. Buy American !!! I do when I can.
I am in agreement.. never in our history have we ever need to cease trading with the East like we do now. Close our doors and let us heal. No more back door foreign investment or currency manipulation. Go back to gold...
this is a high profile sign of panic.
Wonder where gold is going to stablize at in 90 days
there is just too many USD
First deflation...than gold rises with inflation.
Imagine where it will be if we go back to a gold standard in 6 months.
buying the entire market will cure coronavirus
They r really gonna have gud tym clearing all that debt.
I'm sick of our leader running around with his hair on fire. All this overreaction could further destroy markets! At this point everything is stable and Americans are stockpiled. All that our citizens and businesses need is a stay of financial obligations for a month or two and pick up where we left off. Most lending institutions are already willing. Would not cost the government a dime! Why are we headed into the abyss and a socialistic society? Hey! Anyone ever read Revelation?
As opposed to anarchy or martial law?Concentration camps for food thieves? Never underestimate the power of hungry and jobless people in uncontrollable numbers. It may be a different type of revolution then you anticipate.
I agree. all this will do is create an inflation nightmare in the future. how can they think 4trillion dollars will fix this once the virus is contained the dollar will be worthless
That indeed should be rhe concern. Look at state governments now indicating they'll actually begin emptying prisons? These guys should face charges for this. Crime will most likely increase. The liberal theorists come up with this *rap
the federal government collected $3.9 billion in taxes last year. personal and corporate. why not just refund all taxes paid in 2019. it would be cheaper and more effective. They are throwing $1,000 at people to keep them quiet about massive bailouts to reckless corporate structures. most of whom have little to zero tax liability in this country.
Well said except for the actual number -
Agreed except the orher more heartless example of Jim is afraid of getting sick OR draining his 25 year savings so doesn't help. There ARE people who aren't careful but expect others to be there for them. I'm not sure how one person should respond to the carefree neighbor or family member that's not careful.
That sure sounds like an easy fix, lets just send all the money back even to households that may not actually need it.
Great, I want my country do like this too.
To get that money, what is the family salary cap???
They need to target this to people who actually need it. There should also be a varriation on your region. In boston that wont keep the bills paid very long.
Our money and our resources...48 now, still waiting for my oil and mineral royalties.Oh wait...
Right again. Federal rates of pay vary nationwide.
Kinda like taxes? Fair is good for everybody.
Wow!
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