Treasury Secretary Mnuchin Defends Trump Administration's Response to Coronavirus Outbreak

Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell testified before the Senate Banking Committee on Tuesday, defending the Trump administration's response to the coronavirus outbreak. The hearing came as Congress debates its next steps in responding to the pandemic, with some lawmakers pushing for more federal spending to aid businesses and individuals. Mnuchin touted the CARES Act as the "biggest rescue package in the history of Congress," while Powell highlighted the Fed's role in backing hundreds of billions of dollars in loans to businesses and shore up the economy.

Key Takeaways:

• The CARES Act, passed in late March, provides $2 trillion in aid to businesses, cities, states, and individuals, with a $500 billion Treasury fund set up to support the economy.
• The Congressional Oversight Commission reported that a small portion of the $500 billion Treasury fund has been committed, but lawmakers are pressuring Mnuchin and Powell to move faster on lending to businesses and states.
• Sen. Sherrod Brown (D-Ohio) questioned the Trump administration's handling of the Treasury fund, saying that the Fed should prioritize supporting workers and not large corporations, particularly in the oil and gas industry.
• Mnuchin and Powell faced criticism for the Fed's Main Street Lending Facility, which has yet to be launched, and for altering the terms of the program to aid companies with up to 15,000 employees.
• Lawmakers pressed Mnuchin and Powell on the role of essential workers in the economy and the Trump administration's push to reopen the economy.

Statistics:

• $2 trillion: The total amount of aid provided by the CARES Act to businesses, cities, states, and individuals.
• $500 billion: The size of the Treasury fund set up to support the economy.
• $150 billion: The amount sent to cities and states through the Cares Act for municipal lending.
• 40%: The proposed increase in GDP growth predicted by the Trump administration.
• 15,000: The number of employees allowed under the altered terms of the Fed's Main Street Lending Facility.

Sources:

• WASHINGTON (AP) - Treasury Secretary Steven Mnuchin defended the Trump administration's response to the coronavirus outbreak Tuesday at a hearing in which senators pressed him to move faster on hundreds of billions in lending to businesses, cities, states and others, on March 31, 2020
• Congressional Oversight Commission, "Initial Review of the Treasury's and Federal Reserve's Response to the COVID-19 Pandemic," on April 20, 2020.