Treasury, Fed chiefs testify on economy

Unemployment could continue to rise in the United States, Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell warned. The pair testified on Tuesday before the Senate Banking Committee about Congress’ economic rescue package and the outlook for the economy during the coronavirus pandemic.

What did they recommend? Mnuchin warned that prolonging shutdowns increases the risk of long-term damage to the economy. American businesses should reopen as long as owners do it responsibly, he said. Powell encouraged Congress to approve more financial aid for businesses to avoid a deeper recession. He added that the Federal Reserve would launch lending programs for medium-sized businesses and state and local governments by the end of the month.

Dig deeper: Listen to this week’s Moneybeat on The World and Everything In It with host Nick Eicher and financial analyst David Bahnsen.