Different Views on Stimulus Bill
Mnuchin and Powell: "Stimulus Measures Needed"
Kudlow: "No Stimulus Needed for V-Shaped Recovery"
Federal Reserve Chair Jerome Powell (right) and Treasury Secretary Steven Mnuchin are appearing before the House on the 22nd to testify. [Image source=AP Yonhap News]
[Asia Economy New York=Correspondent Baek Jong-min] Jerome Powell, Chairman of the Federal Reserve (Fed), and Steven Mnuchin, Secretary of the Treasury, agreed on the 22nd (local time) that although the U.S. economy is recovering from recession and showing an upward trend, economic stimulus measures are still necessary.
In contrast, unlike the two, Larry Kudlow, Director of the National Economic Council at the White House, expressed the opposite view, stating that no additional support policies are needed to sustain a V-shaped economic recovery.
Powell and Mnuchin testified to the House Financial Services Committee on the same day, sharing these views. The market paid close attention to what the heads of fiscal and monetary policy would say amid conflicts between U.S. political parties over the passage of economic support legislation.
Chairman Powell said that the U.S. economy has recently shown clear signs of improvement but added, "However, the road ahead remains very uncertain," and "If necessary, we will take further measures."
He emphasized the administration's active fiscal policy, noting that employment and overall economic activity still fall far short of pre-COVID-19 pandemic levels, and that the future path depends on virus control and government policy actions.
Secretary Mnuchin also assumed a rapid recovery of the U.S. economy but regarding additional stimulus, said, "The President and I are committed to providing support to American workers and businesses," and that the support package is "still necessary."
He stated that the government "is ready for bipartisan agreement," especially emphasizing the need for support for certain industries severely affected by COVID-19.
Unlike the two, the White House expressed a completely different voice. Director Kudlow claimed on the day, "I do not believe a V-shaped economic recovery depends on a stimulus package," explaining that "targeted measures for certain specific sectors may be necessary."
CNBC described Kudlow's remarks as directly contradicting the testimonies given by Chairman Powell and Secretary Mnuchin before Congress.
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