Fed Chair Jerome Powell and Treasury Secretary Steve Mnuchin are testifying before the Senate Banking Committee today. The live stream from Fox Business is available below –
(The video belongs to Fox Business)
Powell and Mnuchin will speak on the $2T stimulus bill signed into law by the president after its passage in Congress.
In recent days, both Powell and Mnuchin have made statements regarding the state of the economy. Mnuchin came out a few days back to talk about the need to reopen. The Treasury Secretary said the country risks great economic consequences if it doesn’t reopen.
Powell also shook DC and Wall Street last week when he proclaimed only big government spending can save the economy. While speaking to lawmakers, Powell urged greater spending from Congress and advised ‘not to worry’ about raising the national debt. According to the Fed Chair, economic and job growth could be extremely sluggish for many years to come if Congress hesitates to spend.
Why Are Mnuchin and Powell Testifying Before the Senate?
Mnuchin and Powell are testifying on the subject of coronavirus relief. In March, $2T CARES Act became law. The Senate Committee members are expected to ask Mnuchin about the allocation of money in the CARES package.
While Mnuchin is expected to echo the sentiments of the White House at the hearing, Powell could deliver another explosive statement as he did a few days back. After speaking to lawmakers last week, Powell also went on 60 Minutes and said full-scale economic recovery remains more than a year away i.e late 2021.
Mnuchin and Powell will both testify in a virtual Senate hearing. Holding hearing virtually is slowly becoming a norm. Dr Fauci testified before the Senate in a virtual hearing as well. The Trump administration’s economic strategy will probably become clearer after the Senate hearing. While it remains unlikely that the White House will adopt the big-spending advise Fed Chair Powell is prescribing, the hearing may yet let the American people see the administration’s stance clearly.
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