The United States remains in a "deep hole" economically because of the coronavirus pandemic, but as states are starting to reopen businesses a dramatic bounce back is coming by August and September, Treasury Secretary Steven Mnuchin said Tuesday.
"We are in a deep hole because of a virus and because of that fact that we have to shut down major parts of the economy, not because business was bad," Mnuchin told Fox Business' Stuart Varney. "As a matter of fact, we had the best economy ever. As states start opening up, I think you are going to see a lot of demand come back."
The states will open slowly, said Mnuchin, and the pickup will begin in June and July, "but I think by August and September, you are going to see a big bounce back from what has been a very rocky period."
In addition, the $3 trillion that is being plowed into the economy will have a "huge impact," said Mnuchin, and the Paycheck Protection Program will impact more than 60 million workers, or half the private workforce.
"You are going to see the enhanced unemployment insurance, the direct deposit payments, and other programs that we're working on with the Federal Reserve to inject unprecedented liquidity into the U.S. economy," he added.
Meanwhile, President Donald Trump has insisted there will be no bailouts for industries, said Varney, asking if that means the money that went to airlines and may go to oil companies would have to be repaid.
"With the airlines, there were two components of it," said Mnuchin. "We have been very clear, this is not a shareholder bailout. The president has been very clear, he wants me and the secretary of energy to study very carefully the oil industry and we are looking at providing liquidity but again, that won't be a bailout but oil and energy are critical to us and we are absolutely determined to protect our energy Independence."
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