Mnuchin Defends US Fiscal Response to Pandemic, Seeks Payroll Loan Extension

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 federal rescue programs rolled out over the past two months were working to support an economy devastated by the novel coronavirus.

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 to free up trillions of dollars of additional aid to further bolster the economy, help states and increase pay for essential workers doing 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 enough medical supplies were in place to battle the virus.

Mnuchin warned prolonged lockdowns would pose a “risk of permanent damage” to the economy.

“How many workers should give their lives to increase the GDP or the Dow Jones by 1,000 points?” Senator Sherrod Brown, the committee’s top Democrat, asked Mnuchin.

“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.” Brown interrupted him, adding, “Thanking is great, but is it fair our economy pays the essential workers so little in such work conditions?”