US Treasury Urges Congress To Direct $580B to Economy
The head of US Treasury is convinced that American economy has not yet recovered from the pandemic and requires more stimulus.
Treasury Secretary Steven Mnuchin suggested that the lawmakers should seriously consider redirection of unspent stimulus funding, including money he is pulling back from the Federal Reserve, to stimulate the economy as the U.S. waits for a coronavirus vaccine.
I hope that Congress will seriously consider reallocating $580 billion of funds that have already been appropriated that wouldn't cost taxpayers an additional penny, he said to reporters on Thursday.
Earlier in the day, Mr. Mnuchin requested the return of unused funds from the Fed's emergency pandemic lending program, triggering pushback from the central bank, which said the programs served a vital role.
Travel, entertainment and restaurants firms are the most impacted by pandemic
and require more funds. The extension of the unemployment insurance is needed as well.
Funding is needed especially "for companies that are impacted by pandemic – such as travel, entertainment and restaurants – they don't need more debt, they need more PPP money, they need more grants," he added, referring to the small-business lending program known as the Paycheck Protection Program. He also suggested the funds could be used to extend unemployment insurance.
Yields on 10-year Treasuries dropped about two basis points amid the news to end Thursday at 0.83% and fell slightly at the start of Friday's trading in Asia.