SMM: in testifying to the House Financial Services Committee, Federal Reserve Chairman Colin Powell stressed that controlling the epidemic is crucial to the rebound of the US economy. Us Treasury Secretary Mnuchin said as much as $140 billion in loans to small businesses could change the focus of aid to support industries hardest hit by the epidemic, such as restaurants and hotels. Mr. Powell said the next stimulus bill should look for ways to help the hardest-hit industries, such as hotels.
The transcripts of speeches prepared by Powell and Mnuchin to testify were released the day before, on Tuesday. In a speech read on Wednesday, Powell said the United States has entered an important new phase faster than Fed officials expected. The rebound in economic activity is welcome, but it presents new challenges and the need to keep the virus under control.
'The path of economic development is extraordinarily uncertain, which largely depends on our success in containing the virus, 'Mr. Powell said. In testifying and answering questions, Powell said that if a second wave of the epidemic breaks out, the most serious consequence will be to undermine public confidence, and the economy needs public confidence.
Powell hinted that the Fed may change its emergency lending programs during all nine outbreaks launched as of Monday. Powell referred to the loan facility launched by the Federal Reserve to support small and medium-sized enterprises, saying that it may once again lower the threshold for companies to obtain such loans. He also said the Fed is considering increasing "asset-based" evaluation criteria for companies applying for such loans.
In his speech, Mr. Mnuchin said that the Ministry of Finance is closely monitoring the economic environment, and that some industries, such as construction, are recovering rapidly, while others, such as retail and tourism, are affected for a longer time and may need to increase their assistance. The Treasury looks forward to working with Congress in July on the legislation that may be necessary. He predicted that the economic environment would "significantly improve" in the second half of the year.
Mnuchin reiterated his commitment to work with lawmakers to launch a bill on the next round of economic stimulus, saying he hopes to pass the bill by the end of July. "any additional bailouts will be targeted at specific industries."
(PPP), a compensation protection program designed to protect employees during a small business epidemic, expired on Tuesday and stopped accepting loan applications. During his testimony, Mr. Mnuchin referred to the rest of the PPP program, saying that there was support from both Democrats and Republicans that the rescheduling of loans to small businesses could be tailored to the types of small businesses most affected by epidemic measures.
Mnuchin said the Trump administration does support additional legislation and hopes to complete the new stimulus package by the end of July. He added that both the Treasury and the Federal Reserve are studying extending the maturity of the Fed's lending facility.
Mnuchin said he wanted to send a signal to ordinary people that the government would work with Congress to ensure that it could do everything it could to get everyone back to work, and that he was optimistic about the prospects for the R & D epidemic.
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