- Treasury Secretary Steven Mnuchin on Tuesday said that he thinks the US economy will be out of the coronavirus-induced recession by the end of the year in an interview during the Bloomberg Invest Global virtual event.
- Mnuchin also said that it’s highly unlikely that the US will shut down the economy again, even as fears of a second wave of coronavirus cases mount.
- In addition, Mnuchin said the Trump administration is considering another stimulus package that could be passed in July.
- Read more on Business Insider.
The US economy will emerge from the coronavirus-induced recession in the coming months, according to Treasury Secretary Steven Mnuchin.
In an interview during the Bloomberg Invest Global virtual event, Mnuchin was asked whether he thinks the US will be out of a recession by the end of the year.
“I do,” Mnuchin replied. President Donald Trump has similarly touted a swift economic rebound from the depths of the coronavirus pandemic shock, which has cost millions of Americans their jobs and put the national unemployment rate at 13.3%.
Economists expect that a recovery from the impact of the lockdowns to curb the spread of the coronavirus pandemic will take much longer, even if the shock of the crisis was swift. Still, recent economic data including May employment and retail sales figures point to early signs that a recovery is underway.
The National Bureau of Economic Research, the official arbiter of recession dates, declared that the US entered a downturn in February, spurred by the shock of the coronavirus pandemic.
Mnuchin also said that it’s highly unlikely that the US will shut down its economy again, even if COVID-19 cases increase. Fears of a second wave of coronavirus have grown as some states are seeing an uptick in cases since reopening their economies.
“Right now, we’re in a different situation,” Mnuchin said. He added that hospitals are not currently overwhelmed with patients, and that more is known about coronavirus.
The Trump administration is also considering another stimulus package that could be passed in July, Mnuchin said. In March, Trump signed the $US2.2 trillion CARES act, which included expanded unemployment benefits, loans to small businesses, and direct $US1,200 checks to Americans.
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