Mnuchin expecting ‘big’ economic rebound later in the year

Treasury Secretary Steven Mnuchin on Sunday downplayed concerns about a recession prompted by the coronavirus pandemic, telling Fox News’s Chris Wallace that he expects a “big rebound” later in the year if the response to the outbreak is handled properly.

“What I’d focus on is what do we need to do right now because it’s clear we need to get economic relief to the economy right now,” Mnuchin said on “Fox News Sunday.” “If the medical professionals are correct and we’re doing all the things, I expect we’ll have a big rebound later in the year.”

“This isn’t like the financial crisis, as I’ve said, this will have an end to it as we confront the virus,” Mnuchin added. “What I’d focus on is we need to get economic relief to the people who are impacted by this.”

Wallace pressed Mnuchin on how much further markets are likely to drop, with the Treasury secretary responding: “What I can tell you is people who bought stocks after the crash in 87, people who bought stocks after the financial crisis did really well, so in terms of long-term investors, I have every confidence that this market is going to be higher down the road and the U.S. is still the greatest place to invest.”

The Fox host also questioned Mnuchin on the president’s call for a payroll tax cut in response to the outbreak, which has a steep path in Congress amid bipartisan opposition.

“The president wants to get economic relief to the right people,” Mnuchin said. “The president is also willing to consider refundable tax credits which in essence are another way of getting money to people.”