By David Lawder and Andrea Shalal
By David Lawder and Andrea Shalal
WASHINGTON, March 20 (Reuters) – U.S. Treasury Secretary Steven Mnuchin has stepped into the breach because the Trump administration’s level man to rescue the economic system from coronavirus devastation, taking up the position his former Goldman Sachs boss, Hank Paulson, performed over a decade in the past.
Mnuchin has carefully adopted the monetary disaster playbook utilized by Paulson when he led the Treasury Division in 2008, reactivating Federal Reserve credit score market backstops and asking Congress for $1 trillion to prop up corporations and shoppers because the economic system grinds to a halt because of the unfold of the virus.
Paulson, responding to a deepening subprime mortgage disaster that prompted turmoil in monetary markets, sought $700 billion to purchase up poisonous mortgage belongings. Like Paulson at the moment, Mnuchin has warned that inaction would deliver dire penalties for the economic system.
Nonetheless, many observers together with Paulson acknowledge the present disaster bears little resemblance to the one in 2008.
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