The President and the Secretary of the Treasury were invited by the committee to present their first quarterly report on the $ 2.2 trillion CARES law.
In his written testimony, Secretary of the Treasury Department, Stephen Mnuchin, said, “I want to start by recognizing the unprecedented challenges that the American people represent for communities across the country. Without any fault on their part, the American people also face economic challenges. I am inspired by the health professionals of our country and the first responders on the front line who take care of their fellow citizens. Thanks to their efforts and their unwavering commitment to their communities, I am convinced that our nation will emerge from the pandemic stronger than ever. “
Mnuchin also said he was working to get the SBA to process more than 4.2 million loans over $ 530 billion, “to keep tens of millions of working Americans on the payroll.” “
He said they had made more than 140 million economic impact payments totaling more than $ 240 billion to help millions of Americans. He also said they had distributed $ 150 billion to states, local and tribal governments through the coronavirus fund for essential services.
In his written testimony, Fed President Jerome Powell said, “In discussing the steps we have taken, I will start with monetary policy. In March we lowered our policy rate to almost zero and plan to keep interest rates at this level until we are satisfied that the economy has survived recent events and is on track. achieve our goals of maximum employment and price stability. “
His written testimony also stated, “The Federal Reserve’s response to this extraordinary period was guided by our mandate to promote maximum employment and stable prices for the American people, as well as our responsibilities to promote the stability of the financial system. We are committed to using our full range of tools to support the economy during this difficult time, although we recognize that these actions are only part of a broader public sector response. “
In the first report of the Congressional Oversight Commission, they responded to the pandemic with four bills to stabilize the economy and finance health care.
- Additional ownership of coronavirus preparation and response
- The Family First Coronavirus Response Act
- Coronavirus Aid, Rescue and Economic Security Act (CARES)
- The Pay Check Protection Program and the Improved Health Care Act
The first law provided $ 8.3 billion for emergency funding for public health measures. The second act increased federal funding for Medicaid by 6.2%, an increase of about $ 35 billion a year. The third law (CARES) extended unemployment benefits, hospital funding with $ 150 billion in direct assistance, $ 349 billion in loans repayable to small businesses through PPP, and an additional $ 500 billion in loans to businesses and state and local governments. The latest law (PPP) increased funding for PPP by $ 321 billion to a total of $ 670 billion to complement funding for health care providers and increase funding for Covid-19 tests.
These incredibly strong measures to protect our economy in the United States and provide the help that much-needed citizens and businesses have been very optimistic about have safe haven assets such as gold, which has earned $ 14. today.
At 5:20 p.m. EST, gold futures are currently set at $ 1,748.10. US stocks were traded lower thanks to accommodative measures from the FED and the Treasury, the Dow lost 390 points or 1.59%. The Standard & Poor’s 500 lost more than one percent in value, while the NASDAQ composite lost 0.54% in trading today.
Today’s testimony from President Powell and Treasury Secretary Stephen Mnuchin has shown that they are allocating significant funds and even after the pandemic is over, the impact of massive spending will continue to weigh heavily on the economy.
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I wish you as always good business and good health,
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