The Federal Reserve (Fed), the US system of central banks, may soon receive $ 4 trillion to absorb the economic impact of the coronavirus outbreak, US Treasury Secretary Steven Mnuchin said on Sunday.
Part of the amount is paid directly to American families. Depending on the amount of family members, each family receives a one-time gift of approximately $ 3,000 (about 2,790 euros).
The rest of the massive amount should keep American companies alive for the next three to four months, Mnuchin argues. “By pumping money into the economy, we can stabilize the situation.”
Lockdowns apply in the U.S. states of New York, California, Illinois, Connecticut, and New Jersey. Shops are closed and residents should stay at home as much as possible. It concerns about a quarter of the American population.
Congress votes Monday on support package
Before the aid package can be used, the US Congress has yet to approve the proposal. The aid package is currently being planed, which must be submitted to the House of Commons and the Senate on Monday.
US President Donald Trump would like to counter the economic damage with tax measures, among other things. Aviation in particular, which is suffering from a huge malaise due to the virus, could count on support.
Mnuchin said on Sunday in conversation with Fox News Live that further measures are not inconceivable if the health crisis is not under control within ten to twelve weeks. “Our economy is going to take a hit, but once the crisis is over, it will bounce back,” said Mnuchin.
The US stock markets have plummeted in recent weeks and have experienced the worst price day since the crash of October 19, 1987. Worldwide announcements of aid packages to cushion the economic impact of the corona virus have somewhat dampened investor confidence in recent days.
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