At a congressional hearing yesterday, Treasury Secretary Steven Mnuchin opened the door to actions to boost the economy and help businesses and workers in the future while trying to calm fears about the immediate impact of the outbreak, The Hill reported. But even as the Trump administration grapples with the public health aspect of the outbreak, there are mounting questions about its economic response. Democrats were eager for the administration to detail an economic response beyond boosting pressure on the Federal Reserve to slash interest rates, especially after the central bank delivered an emergency cut amid Mnuchin’s testimony. The Fed announced Tuesday its first intermeeting interest rate cut since 2008 after weeks of pressure from the administration and plunging financial markets. Democrats asked Mnuchin about steps the administration might take to help small businesses hurt by the outbreak and workers who may stay home if the virus becomes more widespread but who don’t have sick leave. Mnuchin said that the administration has created a sub-task force at Treasury to examine business issues related to the outbreak and that the administration may come back to Congress seeking specific actions. He also said the administration isn’t currently considering suspending tariffs on European and Chinese goods but that the White House would examine its options as the outbreak progresses. Read more.
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