Statement of Secretary Steven T. Mnuchin Before the Financial Services Committee (September 22, 2020)

Summary

Statement of Secretary Steven T. Mnuchin, Department of the Treasury, before the Financial Services Committee, U.S. House of Representatives, September 22, 2020, updating the Committee on Treasury and Federal Reserve relief efforts. The statement asserts that America is in the midst of the fastest economic recovery from any crisis in U.S. history, citing the August jobs report showing 10.6 million jobs regained since April and an unemployment rate of 8.4%. It says the Federal Reserve implemented 13 unique 13(3) lending facilities and that a targeted Phase IV relief package is still needed. It also describes Treasury's transparency efforts and cooperation with oversight bodies including the Special Inspector General for Pandemic Relief and the Government Accountability Office. These are the Secretary's own characterizations.

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                            Statement of Secretary Steven T. Mnuchin
                                   Department of the Treasury
                             Before the Financial Services Committee
                                  U.S. House of Representatives
                                       September 22, 2020

Chairwoman Waters, Ranking Member McHenry, and members of the Committee, I am pleased
to join you today to update you on how the Department of the Treasury and the Federal Reserve
have been partnering over the last six months to provide relief for American workers and
liquidity to credit markets, businesses, non-profit organizations, state and local governments, and
households. We are fully committed to getting every American back to work as quickly as
possible.


Economic Recovery


America is in the midst of the fastest economic recovery from any crisis in U.S. history. The
August jobs report showed that the economy has gained back 10.6 million jobs since April—
nearly 50% of all jobs lost due to the pandemic. The unemployment rate has also decreased to
8.4%, a notable achievement considering some people were expecting up to 25% unemployment
at the height of the pandemic. Thanks to the programs provided through the CARES Act, we
never got close to that figure.


I believe we will see tremendous third-quarter growth, fueled by strong retail sales, housing
starts and existing home sales, manufacturing growth, and increased business activity. The
September Blue Chip survey increased its projection for third-quarter GDP growth by 5.3
percentage points to 24%.


The recovery has been strong because the Administration and Congress worked together on a
bipartisan basis to deliver the largest economic relief package in American history. The Federal
Reserve has also been instrumental to the recovery by implementing 13 unique 13(3) lending
facilities.
Economic reopenings, combined with the CARES Act, have enabled a remarkable economic
rebound, but some industries particularly hard hit by the pandemic require additional relief.


Phase IV Relief


The President and I remain committed to providing support for American workers and
businesses. We continue to try to work with Congress on a bipartisan basis to pass a Phase IV
relief package. I believe a targeted package is still needed, and the Administration is ready to
reach a bipartisan agreement.


Transparency


Treasury has been working hard to implement the CARES Act with transparency and
accountability. We have released a significant amount of information to the public on our
website, Treasury.gov, and on USAspending.gov. In many instances, we have released more
information than what is required by the statute. The Federal Reserve has also posted
information on its website regarding its lending facilities.


We have provided regular updates to Congress, with this marking my sixth appearance before
Congress for a CARES Act hearing. Additionally, we are cooperating with various oversight
bodies, including the new Special Inspector General for Pandemic Relief, the Treasury Inspector
General, the Treasury Inspector General for Tax Administration, the new Congressional
Oversight Commission, and the Government Accountability Office (GAO).


We appreciate Congress’s interest in these issues and have devoted significant resources to
responding to inquiries from numerous congressional committees and individual Members of
Congress on both sides of the aisle. We remain committed to working with you to accommodate
Congress’s legislative needs and to further our whole-of-government approach to defeating
COVID-19.
Conclusion
I would like to thank the members of the Committee for working with us to provide critical
economic support to the American people. I am pleased to answer any questions you may have.


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