US Treasury's Mnuchin backs calls for fourth stimulus package

US Treasury Secretary backed calls for further fiscal stimulus which he credited with having already saved at least 50m jobs.

In remarks to the Senate Small Business and Entrepreneurship Committee, on Wednesday, Steve Mnuchin said: "I do think the economy is going to rebound significantly, but there is still significant damage in parts of the economy."

According to Mnuchin, the Paycheck Protection Program, the mainstay of the $2.2trn economic relief package approved in March, which was designed to help companies keep people on their payrolls, had avoided 50.0m layoffs.

The fourth round of fiscal support should focus on travel, retail and leisure firms, and perhaps more cash for American families, he said.

Mnuchin also said that the idea of capital gains tax cuts was not the best approach.

He was also supportive of focusing on helping industries and small companies trying to reopen but which had been saddled with reduced capacity and higher costs related to Covid-19.

Republicans in the Senate were expected to table a proposal in late July.