Treasury Secretary Mnuchin sees most of the economy reopening by the end of August
- The Trump administration sees "most of, if not all of, the economy" reopening by the end of summer, Treasury Secretary Steven Mnuchin told Fox Business Network on Wednesday.
- The White House's plan leaves governors in charge of when and how states reboot their economies, but Mnuchin is "operating under the environment" of a step-by-step reopening taking place in upcoming months.
- Referring to the Senate's passage of a $484 billion relief package, the Treasury Secretary said the White House will "spend what it takes to win the war" while still weighing the impact of a massive deficit.
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The White House expects most of the US economy to reopen by the end of the summer, Treasury Secretary Steven Mnuchin said Wednesday.
Nationwide business closures and stay-at-home orders pushed the economy into a deep recession through March and into April, and experts are now looking to what a rebound could entail.
The Trump administration's plan calls for reopening in stages, with less densely packed areas resuming regular activity before cities. Governors will have the final say in scheduling their states' reopenings, but the White House sees most of the nation returning to past behavior by August, Mnuchin said in a Fox Business Network interview.
"We're operating under the environment that we are going to open up parts of the economy," he said. "We're looking forward to, by the time we get later to the summer, having most of, if not all of, the economy open."
Where some see a rapid return to normalcy as the best way to avoid a prolonged economic meltdown, others view a near-term reopening as threatening a coronavirus resurgence. The government has already issued trillions of dollars in fiscal relief, and new legislation is poised to further pad against a downturn until the virus threat subsides.
The Senate passed a $484 billion aid package Tuesday afternoon, teeing the bill up for a Thursday vote in the House and signature from President Donald Trump. The measure boosts lending capacity for small businesses slammed by the outbreak and issues additional funding for hospitals and virus testing.
Financial stimulus for state and local governments is also planned to be revealed in the coming weeks to ensure an economic rebound isn't halted by budget deficits. The Committee for a Responsible Federal Budget said on April 13 it expects the US budget shortfall to nearly quadruple to $3.8 trillion in 2020, a forecast that doesn't yet include the Senate's latest measure.
Unprecedented spending is necessary to avoid a deep recession, the Treasury Secretary said, but the White House isn't ignoring the long-term consequences of a ballooning deficit.
"We need to spend what it takes to win the war," Mnuchin said. "On the other hand, we are sensitive to the economic impact of putting on debt and that's something that the president is reviewing with us very carefully."