Powell and Mnuchin Unite in Saying "Additional Economic Support Needed"

Powell "Stimulus Should Not Be Withdrawn Quickly"
Mnuchin "Additional Stimulus Plan to Be Prepared in July"

Jerome Powell, Chair of the U.S. Federal Reserve System
[Photo by AP]

[Asia Economy New York=Correspondent Baek Jong-min] Steven Mnuchin, the U.S. Treasury Secretary leading the American economy, and Jerome Powell, Chairman of the Federal Reserve (Fed), have called for additional measures to overcome the COVID-19 pandemic early.

On the 30th (local time), Chairman Powell appeared before the House Financial Services Committee and stated, "The future of the economy is very uncertain," adding, "Much depends on the success of virus containment."

He emphasized that "the future of the economy depends on government policy measures to provide relief and support recovery as long as necessary," and warned that no form of stimulus should be withdrawn too early.

Steven Mnuchin, U.S. Secretary of the Treasury
[Photo by Reuters]

Chairman Powell expressed concern that the U.S. gross domestic product (GDP) decline in the second quarter "could be the largest ever," and stressed, "A full recovery is unlikely until people are confident it is safe to resume widespread activities." Powell has repeatedly stated that it is difficult to eliminate economic uncertainty until a COVID-19 vaccine is developed.

Secretary Mnuchin introduced the government's position to pass additional fiscal stimulus measures by the end of July.

Mnuchin also suggested that the remaining $140 billion (approximately 168 trillion won) of the budget allocated for the Paycheck Protection Program (PPP) to maintain employment at small businesses could be used to support sectors hardest hit by COVID-19, including restaurants and hotels.

The Fed is also currently accepting applications from borrowers to implement the 'Main Street Lending' program, which provides direct loans to small businesses.

Mnuchin said, "There appears to be bipartisan support for repurposing (the budget)," adding, "There is a need to secure funds quickly."

This statement seems to reflect growing concerns that if the unemployment benefits supplement program, scheduled to end by the end of July, is terminated, the economic recovery could falter again. The White House has stated its position to end the unemployment benefits supplement as planned and provide subsidies to those who return to work.

This content was produced with the assistance of AI translation services.