Steve Mnuchin was testifying before the Senate Small Business Committee. Mr Mnuchin suggested the Treasury would look to ease rules that currently forbid business owners with a criminal conviction in the last five years from accessing forgivable Paycheck Protection Program (PPP) loans. Under the proposals, it could be reduced to three years and potentially further.
Mr Mnuchin called for more coronavirus aid to help create jobs: “We will have a significant amount of unemployment and we’re going to need to look at doing something there
“I think we’re going to seriously look at whether we want to do more direct money to stimulate the economy, but I think this is all going to be about getting people back to work.”
Mr Mnuchin also added he would consider using $130billion in unclaimed PPP to help rebuild businesses affected by the coronavirus pandemic.
SCROLL DOWN FOR LIVE UPDATES
6.15am update: Federal Reserve
Federal Reserve Chairman Jerome Powell said May’s labor numbers were positive but not enough on their own to suggest the US economy and job market was back on track.
Mr Powell explained: “The labour market may have hit bottom in May.”
He admitted though, “we’re not going to overreact to a single data point.”
Mr Powell added: “We’re not thinking about raising rates. We’re not even thinking about thinking about raising rates.”
5.35am update: US inflation weak
Consumer prices in the US fell in May for a third consecutive month.
Demand for goods remained weak due to the recession caused by coronavirus.
Jim O’Sullivan, chief U.S. macro strategist at TD Securities in New York told Reuters: “We expect the crisis to result in a sustained slowing in inflation due to a net increase in slack.”
Published at Thu, 11 Jun 2020 05:16:00 +0000