Treasury Secretary Steven Mnuchin said on Sunday, March 22, that a tentative coronavirus aid package will include an average of $3,000 for a family of four and provide up to $4 trillion to support liquidity.
Speaking on “Fox News Sunday,” Mnuchin pointed out the scope of the stimulus package that Congress is finalizing to cope with the coronavirus outbreak.
The first part is small business retention loans, he said.
“If you’re a small business, you’ll get two weeks of cash flow to pay your workers, you need to retain them. You’ll also get some overhead, and if you do that, your loans will be forgiven,” Mnuchin said.
“The second part is direct deposits. The average direct deposit or check for a family of four will be approximately $3,000—a bridge for them to get through this quickly,” he added.
“The third component is enhanced unemployment. The fourth component is a significant package working with the Federal Reserve. We’ll have up to $4 trillion to support liquidity that we can use to support the economy,” he continued.
The Treasury secretary said he hopes the stimulus package “gets passed on Monday,” and if the crisis does not abate in 10 to 12 weeks, further steps could be taken.
But Mnuchin said the U.S. economy could rebound once the coronavirus has been contained.
“We need to get the money into the economy now. If we do that, we think we can stabilize the economy,” he said. “I think the president has every expectation that this is going to look a lot better four or eight weeks from now.”
“This isn’t a financial crisis that’s going to go on for years. We’re going to do whatever we need to do to win this war,” Mnuchin said.
Mnuchin downplayed a question about a possible recession, arguing, “When people focus on recessions, it’s normally because of a prolonged economic environment. This is a very unique situation that we’ve never had before. This government has self-imposed shutting down large parts of the economy. And as soon as we can get the medical situation under control, we’re going to reopen it.”
Mnuchin said that the crisis has been moving very quickly, but the Trump administration has “responded appropriately.”