Mnuchin Said Not to Worry About Government Deficit to Delay Stimulus Package
Treasury Secretary Steven Mnuchin said on reports that lawmakers should not be daunted over the size of the government's deficit to delay additional COVID-19 relief package.
Mnuchin said the economic crisis is seeking an extraordinary stimulus from Congress and the Fed.
Mnuchin has led the administration's COVID-19 relief negotiations with White House chief of staff Mark Meadows.
Mnuchin said that this is not the time to worry about the shrinking deficit or shrinking the Fed balance sheet.
Mnuchin said that there was a time when the Fed was shrinking the balance sheet and coming back to normal.
"The good news is that gave them a lot of room to increase the balance sheet, which they did," Mnuchin was quoted in a report.
"And I think both the monetary policy working with fiscal policy and what we were able to get done in an unprecedented way with Congress is the reason the economy is doing better," Mnuchin added.
Mnuchin's comments appear as a criticism to his fellow Republicans.
Members of the party said that improving jobs data and strong housing figures relax the need for additional spending to fight the pandemic's effects.
Sen. Rand Paul, R-Ky voted against the GOP-backed stimulus plan last week.
He has repeatedly said that criticized his own party for what he sees as prodigal spending.
Paul said through tweets that the "majority of Republicans are now no different than socialist Democrats when it comes to debt."
Paul said that they simply do not care about debt and are preparing to add at least another trillion dollars in debt this month.
The collected federal budget deficit for the first 11 months of the fiscal year has reached $3 trillion based on the Congressional Budget Office's data.
Mnuchin argues that more stimulus is needed to boost the country's economy.
He added that the country is rebounding in a very significant way.
"Skinny" Bill
Senate Majority Leader Mitch McConnell (R., Ky.) leads the GOP-backed stimulus package proposal that was rejected through a procedural vote.
The said second stimulus bill included jobless aid, liability protections for business and school funding, among other measures.
The second stimulus bill also included legal aid for businesses and healthcare facilities, a $29 billion in healthcare funding, and a $105 billion budget for schools.
Farmers, ranchers, and other producers were set to receive a $20 billion additional assistance.
Under the rejected bill, parents who do home schools could have to use the money for additional expenses as they would have been provided of tax breaks.
Meanwhile, Mnuchin said they he is still willing to work with White House Speaker Nancy Pelosi for a new deal.
Mnuchin said that he thinks there are many areas where there is an agreement between Democrats and Republicans.
He added that some of the differences that they have are on the amounts.
Mnuchin said he would continue to work on this. He said he told the speaker that he is available any time to negotiate.
Mnuchin said he expects the Problem Solver Caucus to create a stimulus proposal later Monday.
Check these out:
GOP Proposed New Stimulus Package. Who Will Be Included?
Are You in the First Line of Receiving the Second Stimulus Check?
Student Debts Excluded From Second Round of Stimulus Package, Should Be Scrapped
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