Treasury Secretary Steven Mnuchin warned Republican senators that the U.S. unemployment rate could surge to 20% if the government does not provide financial assistance during the coronavirus pandemic.
Mnuchin discussed the possibility with lawmakers on Tuesday, telling them that he believes the economic effects of the coronavirus could be worse than the 2008 financial crisis, according to several reports.
The jobless rate in February was 3.5%. A 20% unemployment rate would be double the jobless rate during the economic downturn in 2008.
“During the meeting with Senate Republicans today, Secretary Mnuchin used several mathematical examples for illustrative purposes, but he never implied this would be the case,” Treasury Department spokeswoman Monica Crowley said.
Mnuchin urged lawmakers to provide immediate financial assistance to wage workers and small- and medium-sized businesses. He told Republicans that the federal government wants to deliver $250 billion in checks to adults in the United States within “a matter of weeks” to address the economic fallout caused by the pandemic.
