U.S. Treasury Secretary Steve mnuchin said that now is not the time to worry about debt, deficits, or the balance sheet of the Federal Reserve, as the administration must help small business, damaged by the pandemic lockdowns.
The comments were made on CNBC as the U.S. approaches $30 trillion in sovereign debt.
“Now is not the time to worry about shrinking the deficit or shrinking the Fed balance sheet,” Mnuchin told CNBC’s “Squawk Box” from the White House. “There was a time when the Fed was shrinking the balance sheet and coming back to normal. The good news is that gave them a lot of room to increase the balance sheet, which they did.”
“And I think both the monetary policy working with fiscal policy and what we were able to get done in an unprecedented way with Congress is the reason the economy is doing better,” he added.
Congress has deadlocked on further pandemic relief as conservatives want to spend less, and Nancy Pelosi’s Democrats want to spend unrealistic amounts, and push politics agendas, such as mail-in-voting.
President Trump has acted unilaterally to extend unemployment benefits, defer payroll taxes, and restrict evictions.
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