Treasury, Fed heads grilled for coronavirus response

Video Credit: Reuters - Politics
Published on May 19, 2020 - Duration: 02:47s

Treasury, Fed heads grilled for coronavirus response

Treasury Secretary Steve Mnuchin and Federal Reserve Chairman Jerome Powell were in the hot seat Tuesday as they faced senators for the first time in a required update on the financial response to the coronavirus pandemic.

Conway G.

Gittens has more on the testy exchange.


Treasury, Fed heads grilled for coronavirus response

MNUCHIN: "We are sympathetic to the hardworking Americans in business, enduring tremendous challenges due to COVID-19.

We are continuing to see large unemployment and other negative indicators.

It is important to realize that the large number represents real people.” A dose of sympathy Tuesday from Treasury Secretary Steve Mnuchin in a joint webcast with Federal Reserve Chairman Jerome Powell before the Senate banking committee.

The two are now required to testify quarterly to update Congress as part of the $3 trillion coronavirus economic assistance program known as the CARES Act.

Mnuchin told lawmakers the U.S. economy must re-open now and the White House is working to help the millions thrown out of work.

“This is why it is so important to begin bringing people back to work in a safe way.

As we listened to medical experts, we are optimistic about the progress being made on vaccines, antiviral therapies and testing.

Working closely with the governors, we are beginning to open the economy in a way that minimizes risk to workers and customers.

We expect economic conditions to improve in the third and fourth quarter and into next year.” But that rosy outlook got push back from key Democrats including Senator Elizabeth Warren… And ranking member Sherrod Brown.

BROWN: “How many workers will die if we send people back to work without the protections they need?

Mr. Secretary.

How many workers should give their lives to increase the GDP or the Dow Jones by a thousand points?" "You know, no workers should give their lives to do that, Mr. Senator, and I think your characterization is unfair." Some Republican senators came to Mnuchin’s defense, while others tried to get Chairman Powell to roll back his call last week, when he urged Congress to consider spending even more to save the economy.

SENATOR PAT TOOMEY (R) PA: "You still stand by that comment?" POWELL: "I do." And Powell went even further when pushed about the impact of leaving out state and local municipalities in future assistance programs, which could throw into the mix massive layoffs of public-sector employees.

“We have the evidence of the global financial crisis and the years afterward, where state and local government layoffs and lack of hiring did weigh on economic growth.

So there is clear evidence that you have a situation where people are unemployed for long periods of time.

That can permanently weigh on both their careers and their ability to go back to work and also weigh on the economy for years, equally." But both men said the Federal Reserve and the Treasury are taking unprecedented steps to prevent that from happening and are willing to do more if necessary.

You are here

💡 One News Page Knowledge: Other News Mentions

United States Department of the Treasury

United States federal executive department
The U.S. Treasury sold off the last of its General Motors shares at a loss to taxpayers of $10 billion; and, when Christo Brand became a guard at Robben Island,..
Credit: CBS News - Published 16 hours ago

The Treasury Department says next year it will begin selling U.S. government securities - the first new Treasury security in 17 years. Alison Harmelin reports on..
Credit: CBS News - Published 21 hours ago

The president has repeatedly called for a big payment to the Treasury Department if a Chinese company sells the app to Microsoft, but there is no provision in..
Credit: NYTimes.com - Published 6 days ago

Steven Mnuchin

77th and current United States Secretary of the Treasury
Treasury Secretary Steven Mnuchin talked with Speaker Nancy Pelosi for the first time since negotiations on a new coronavirus relief bill collapsed, but neither..
Credit: NYTimes.com - Published 2 days ago

Top Democrats say Mnuchin made an "overture" to meet but made it clear "the White House is not budging" in negotiations.
Credit: CBS News - Published 2 days ago

Ivanka Trump and Treasury Secretary Steve Mnuchin also gave money to Harris in the past.
Credit: CBS News - Published 2 days ago

Chair of the Federal Reserve

American government office

Federal Reserve

Central banking system of the United States
The Federal Reserve has lowered interest rates over the past few months. Here's how their actions affect you.
Credit: USATODAY.com - Published 57 minutes ago

The Senate confirmed Janet Yellen Monday as the head of the Federal Reserve. She will be the first woman to lead the central bank. Norah O'Donnell reports.
Credit: CBS News - Published 1 hour ago

In his last press conference as Federal Reserve chairman, Ben Bernanke said the Fed will continue to stimulate the economy, but will cut bond purchases by $10..
Credit: CBS News - Published 2 hours ago

All eyes are on the Federal Reserve, which concludes its last policy meeting of the year Wednesday. Since May, when Chairman Ben Bernanke first suggested that..
Credit: CBS News - Published 3 hours ago

All eyes will be on Ben Bernanke as he is set to deliver a major speech that could contain clues about future central bank actions. Analysts will be on alert for..
Credit: CBS News - Published 20 hours ago

United States Senate

Upper house of the United States Congress
"CBS This Morning" takes a look at some of the day's headlines from around the globe.
Credit: CBS News - Published 44 minutes ago

CBS News political correspondent John Dickerson discusses the issues faced by President Obama and the Senate as they begin the new year.
Credit: CBS News - Published 2 hours ago

Liz Cheney released a statement saying she is dropping out of the Wyoming Republican Senate primary after her five-month campaign was plagued by distractions...
Credit: CBS News - Published 2 hours ago

The latest on the 2014 agenda in Washington, from Obamacare to unemployment benefits, with Senate Majority Leader Harry Reid, D-Nev., Reps. Matt Salmon, R-Ariz.,..
Credit: CBS News - Published 2 hours ago

Elizabeth Warren

United States Democratic Senator from Massachusetts
The senator says child care is crucial for bringing the economy back: “Women continue to have to manage it all.”
Credit: NYTimes.com - Published 1 week ago

Presumptive Democratic nominee Joe Biden is expected to announce his pick for vice president next week. CBS News political correspondent Ed O'Keefe joins CBSN to..
Credit: CBS News - Published 1 week ago

Coronavirus disease 2019

Infectious respiratory disease caused by severe acute respiratory syndrome coronavirus 2
The National Urban League is out with its report on the State of Black America in 2020, as the coronavirus pandemic and protests over police violence expose..
Credit: CBS News - Published 2 hours ago

The nation's top infectious disease expert is warning against the idea of letting coronavirus infections to run rampant in order to achieve possible herd..
Credit: CBS News - Published 4 hours ago

You might like