Mnuchin Calls for Targeted Stimulus Package at Hearing Description video: Sep.24 — U.S. Treasury Secretary Steven Mnuchin tells the Senate Banking Committee that a targeted Covid-19 pandemic relief package is “still needed.” Mnuchin calls the epidemic a chance for long-term investors Treasury […]
Mnuchin Calls for Targeted Stimulus Package at Hearing
Sep.24 — U.S. Treasury Secretary Steven Mnuchin tells the Senate Banking Committee that a targeted Covid-19 pandemic relief package is “still needed.”
Mnuchin calls the epidemic a chance for long-term investors
Treasury Secretary Stephen Mnuchin told CNBC on Friday that the market sell-off will be short-lived and looks like a compelling opportunity for investors looking to buy shares at a discount..
«This is a short term problem. It may take a couple of months, but we will deal with it, and the economy will be stronger than ever, ”he said. “I look at people who bought stocks after the 1987 crash, people who bought stocks after the financial crisis. For long-term investors, this will be an excellent investment opportunity».
The Treasury Secretary’s comments came ahead of the market opening after the worst day on Wall Street since 1987. Dow Jones Industrial Average and S&The P 500 suffered its worst drop in more than 30 years on Thursday as investor sentiment due to the coronavirus pandemic worsened and went from a state of uncertainty to panic.
Both major US stock indexes completed their historic 11-year rally this week and fell more than 20% below their all-time highs in bear markets..
But Mnuchin said the current selloff is nothing like the systemic slowdown that occurred during the financial crisis 12 years ago. Instead, he compared the situation to short, heavy selling of stocks that took place in «black monday» in 1987, when Mnuchin was still a trader.
«This is not like a financial crisis, when people do not know when it will end: we will cope, – added Mnuchin. – By the end of the year, I think you can expect us to have a big boost in economic activity».
Dow and S&The P 500 rebounded 5.5% shortly after Friday’s opening, given the large losses suffered over the past month.