In economics, stimulus refers to attempts to use monetary policy or fiscal policy (or stabilization policy in general) to stimulate the economy. Stimulus can also refer to monetary policies such as lowering interest rates and quantitative easing .
106-596: The Coronavirus Aid, Relief, and Economic Security Act , also known as the CARES Act , is a $ 2.2 trillion economic stimulus bill passed by the 116th U.S. Congress and signed into law by President Donald Trump on March 27, 2020, in response to the economic fallout of the COVID-19 pandemic in the United States . The spending primarily includes $ 300 billion in one-time cash payments to individual people who submit
212-653: A Milken Institute event in Beverly Hills with Michael Milken . Milken was already an investor in the Nevada tract. In August 2018, Mnuchin attended a Milkin Institute conference on "opportunity zones" in the Hamptons with Milken and later accepted a flight to Los Angeles with Milken on his private jet. Treasury later issued a regulatory guidance that allows prior investors to benefit from newly designated "opportunity zones". At
318-407: A Porsche and lived at New Haven's Taft Hotel. Mnuchin's first job was as a trainee at investment bank Salomon Brothers in the early 1980s, while still studying at Yale. Mnuchin graduated from Yale in 1985 and started working for Goldman Sachs , where his father had been employed since 1957. Mnuchin started in the mortgage department, and became a partner at Goldman in 1994. Until he left
424-563: A Russian-born diamond dealer who later resided in Belgium , emigrated to the U.S. in 1916. Mnuchin attended Riverdale Country School in New York City. He graduated from Yale University in 1985 with a bachelor's degree in economics. At Yale, Mnuchin was publisher of the Yale Daily News , and was also initiated into Skull and Bones in 1985. While a student at Yale, Mnuchin drove
530-686: A federal building in Washington, D.C. Eric Trump said he hoped the General Services Administration would treat the Trump Organization "the same" as its other tenants.) Political donors are eligible for loans under the Paycheck Protection Program. As of May 3, the largest beneficiary of relief loans under this program is the hotel group Ashford Hospitality Trust. The company is run by Monty Bennett, who donated over half
636-590: A $ 3 trillion relief bill called the HEROES Act , but the Republican-controlled Senate never brought it to a vote. There was no other significant economic relief bill until late December 2020 when Congress reached an agreement on a $ 900 billion stimulus. The Act includes the following provisions. The Act: The Act: Businesses owned by the president, senior government officials, and their immediate families are ineligible for funds distributed through
742-567: A $ 500 billion corporate bailout fund established by the legislation. A provision in the legislation empowers the special inspector general to audit the use of the fund; requires the Treasury Department and other executive-branch entities to provide information to the special inspector general; and directs the special inspector general to report to Congress "without delay" if an agency unreasonably withholds requested information. The Pandemic Response Accountability Committee will coordinate
848-590: A March 18, 2017, meeting of G-20 country finance ministers, Mnuchin supported the Trump administration's trade policy of economic protectionism. During an April 24, 2017, White House briefing, Mnuchin announced Department of Treasury sanctions against the Syrian Scientific Studies and Research Center . He said the sanctions were designed to create accountability for the Bashar al-Assad regime and its supporters in
954-453: A U.S. District Court issued an order certifying a nationwide class of incarcerated individuals. The court also granted a preliminary injunction requiring the IRS and Treasury Department to stop withholding checks solely on the basis of their incarceration status, resulting in payment of $ 100M (0.04% of the total value of all payments). Some citizens of other countries were accidentally given checks on
1060-590: A civil enforcement suit. After Donald Trump lost the 2020 election, Mnuchin established an investment fund, Liberty Strategic Capital. The fund obtained funds from the Saudis, Emirati and Qatari sovereign wealth funds. According to the New York Times , "The scale of Mr. Mnuchin’s fund and its investments from countries where he traveled as Treasury secretary have raised questions about whether he used his government role to enrich himself." On March 6, 2024 Liberty lead
1166-533: A dynamic, booming economy". Mnuchin himself said he was "honored to have the opportunity to serve our great country in this important role". He called Trump's economic agenda a "bold" one "that creates good-paying jobs and defends the American worker". On February 1, 2017, the Senate Finance Committee approved his nomination by a vote of 11–0 with all Democrats boycotting the vote, sending the nomination to
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#17328441649461272-513: A financing deal with Warner Bros. Between 2013 and 2018, RatPac-Dune financed many films for Warner Bros., including American Sniper and Mad Max: Fury Road . Mnuchin was co-chairman of the trio's movie company, Relativity Media , but left seven months before it went bankrupt. A source close to the company said he had resigned because of the potential for a conflict of interest between his duties at Relativity and OneWest. He and other investors reportedly lost $ 80 million. Before joining
1378-458: A government grant of nearly $ 27 million that it does not have to repay. In 2016, the company's founder, Clay Lacy , donated $ 47,000 to the Republican Party after it officially nominated Trump and also donated the maximum allowable $ 2,700 directly to the Trump campaign. Some individuals received checks in the mail, while others received direct deposits in their bank accounts. On May 18,
1484-528: A large stimulus package that, at the time, was envisioned to be about $ 1 trillion, United States Secretary of the Treasury Steven Mnuchin told Republican Senators the United States unemployment rate could reach 20% if no government action was taken. Almost 3.3 million Americans filed for unemployment in the week ending March 21, "nearly five times more than the previous record of 695,000 set in 1982". On March 20, Goldman Sachs predicted
1590-488: A letter calling for taxation of carbon dioxide emissions. On June 12, 2017, Mnuchin denied the debt ceiling not being raised before the August recess would cease federal government operations, and said Congress should weigh the option of "changing the timing so that the debt ceiling matches the budget process so we don't have to deal with this in this format" during a House appropriations subcommittee hearing. On June 14, during
1696-471: A lobbyist; received $ 10 million); Flotek Industries (employed ambassador to Germany Richard Grenell as a consultant; received $ 4.6 million); and MiMedx (their former chief executive Parker H. Petit was Trump's 2016 finance chairman in Georgia; received $ 10 million). Clay Lacy Aviation , a California-based private jet charter company that serves business executives and celebrities, received
1802-487: A million dollars to Republicans in the current election cycle; Bennett received the loans after hiring lobbyist Jeffrey Miller, who fundraised over $ 1 million for Trump's reelection . The company had applied for $ 126 million in loans and had already received $ 76 million when, following criticism, it announced it would return these funds. Other recipients with ties to the Trump administration include Hallador Energy (employed EPA administrator Scott Pruitt as
1908-689: A portfolio belonging to Citi Holdings for $ 1.4 billion. OneWest was profitable one year after Mnuchin had bought it, and it became the largest bank of Southern California, with assets worth $ 27 billion. In 2015, Mnuchin sold OneWest to CIT Group for $ 3.4 billion. After the acquisition by CIT, Mnuchin remained at OneWest, and became a member of CIT Group's board of directors. As of August 2016, Mnuchin owned $ 97 million in CIT Group stock, most of which he had received in exchange for his stake in OneWest . On December 2, 2016, Mnuchin resigned from
2014-486: A preliminary tax reform proposal by Trump in April 2017 "allocates much of the tax relief to the wealthy" and could increase the budget deficit. In a May 2017 event moderated by CNBC, Mnuchin stated the intent was to deliver a "middle-income tax cut", but that final results depended on the actions of Congress. Mnuchin appeared with White House Director of Legislative Affairs Marc Short in a July 2017 event when they vowed to have
2120-484: A prepared testimony ahead of the House subcommittee on State, Foreign Operations and Related Programs, Mnuchin said the budget proposal on the part of the Trump administration "should send a message that the international financial institutions need to operate more efficiently". On July 13, in response to limited lifespans being reported of Social Security and Medicaid, Mnuchin said: "To help make these programs sustainable into
2226-521: A result of bipartisan negotiations, the bill grew to $ 2 trillion in the version unanimously passed by the Senate on March 25, 2020. It was passed by the House via voice vote the next day, and was signed into law by President Donald Trump on March 27. It was originally introduced in the U.S. Congress on January 24, 2019, as H.R. 748 ( Middle Class Health Benefits Tax Repeal Act of 2019 ). To comply with
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#17328441649462332-399: A result of the social distancing measures meant to curb the virus. These measures included working from home, widespread cancellation of events, cancellation of classes (or moving in-person to online classes), reduction of travel , and the closure of businesses. In March, it was predicted that, without government intervention, most airlines around the world would go bankrupt. On March 16,
2438-597: A result of the loss sharing agreement with the FDIC, whereby the FDIC had to reimburse OneWest for losses. According to The New York Times , OneWest "was involved in a string of lawsuits over questionable foreclosures, and settled several cases for millions of dollars". Because of these foreclosures, around 100 protesters of Occupy Los Angeles gathered outside Mnuchin's home in October 2011 and held signs that read "Make Banks Pay". Two California fair-housing groups filed complaints to
2544-571: A side business. It financed a number of large-budget films, mostly for 20th Century Fox , including the X-Men film franchise and Avatar . In 2012, after Dune's deal with 20th Century Fox ended, Mnuchin worked with the filmmaker Brett Ratner and the Australian businessman James Packer to merge his Dune Entertainment company with Ratner and Packer's newly founded RatPac Entertainment joint venture. This formed RatPac-Dune Entertainment , which agreed
2650-571: A tax haven. Mnuchin described the omissions as mistakes made amid a mountain of bureaucracy. Following Trump's January 2017 announcement about an investigation into voter registration, it was discovered that Mnuchin is registered to vote in both California and New York. On February 13, 2017, Mnuchin was confirmed as secretary of the treasury by a vote of 53–47. He received unanimous support from Senate Republicans but from only one Senate Democrat, Joe Manchin of West Virginia. Mnuchin, when asked in an interview with Mike Allen of Axios "whether he
2756-891: A tax return in America (with most single adults receiving $ 1,200 and families with children receiving more), $ 260 billion in increased unemployment benefits, the creation of the Paycheck Protection Program that provides forgivable loans to small businesses with an initial $ 350 billion in funding (later increased to $ 669 billion by subsequent legislation ), $ 500 billion in loans for corporations, and $ 339.8 billion to state and local governments. The original CARES Act proposal included $ 500 billion in direct payments to Americans, $ 208 billion in loans to major industry, and $ 300 billion in Small Business Administration loans. As
2862-463: A third stimulus package, amounting to more than $ 1 trillion. It was suggested that $ 200–500 billion would fund tax rebate checks to Americans who made between $ 2,500 and $ 75,000 in 2018 to help cover short-term costs via one or two payments of $ 600–1,200 per adult and $ 500 per child. Democrats prepared a $ 750 billion package as a counter-offer , which focused on expanding unemployment benefits instead of tax rebates. A compromise plan
2968-523: A time when public health officials have urged Americans to avoid nonessential travel and gathering in large groups". Massie's actions received bipartisan criticism. Former Secretary of State John Kerry , a Democrat, tweeted "Congressman Massie has tested positive for being an asshole. He must be quarantined to prevent the spread of his massive stupidity," a message which was shared by Donald Trump on Twitter. Republican Representative Peter T. King called Massie's actions "disgraceful" and "irresponsible". Despite
3074-657: Is a wartime level of investment for our nation." McConnell continued the analogy to war by saying the CARES Act would provide "ammunition" to health care workers who are the "frontline heroes who put themselves at risk to care for patients" by providing them "the ammunition they need". Chuck Schumer stated on the Senate floor, "Like all compromises, this bill is far from perfect, but we believe the legislation has been improved significantly to warrant its quick consideration and passage, and because many Democrats and Republicans were willing to do
3180-476: Is an American investment banker and film producer who served as the 77th United States secretary of the treasury as part of the Cabinet of Donald Trump from 2017 to 2021. Serving for nearly a full presidential term, Mnuchin was one of the few high-profile members of Trump's cabinet whom the president did not dismiss . Mnuchin was born in New York City. Upon graduating from Yale University in 1985, Mnuchin joined
3286-541: Is owned by his Yale roommate Edward Lampert . From 2003 to 2004 he worked as Chief Executive Officer at SFM Capital Management, a fund backed by George Soros. Mnuchin founded a hedge fund called Dune Capital Management, named for a spot near his house in The Hamptons , in 2004 with two former Goldman partners. After its founding, Mnuchin served as the CEO of the company. The firm invested in at least two Donald Trump projects,
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3392-417: Is tax reform". Mnuchin said he would reduce corporate taxes to 15%, cut taxes for the middle class, and simplify the tax system. When asked about trade, he said he believed in trade deals with individual countries, as opposed to regional trade deals. Mnuchin said, "This president [...] is going to have open communication with business leaders", when asked about keeping jobs from being offshored to Mexico. During
3498-557: Is the term 'artificial intelligence'". While he felt Mnuchin expressed understanding of the role of technology in the labor market and also worried that the secretary and President Donald Trump were both in their ways underestimating technology's impact, he thought the climate-denial charge was excessive. In January 2020, Mnuchin dismissed environmental activist Greta Thunberg , saying she should go to college and study economics before weighing in on policy. Others responded to Mnuchin, noting that thousands of economists with PhDs had signed
3604-448: The FDIC and owned $ 23.5 billion in commercial loans, mortgages, and mortgage-backed securities. The purchase price was a $ 4.7 billion discount to its book value . Mnuchin's investment group included George Soros , hedge-fund manager John Paulson , former Goldman Sachs executive J. Christopher Flowers , and Dell Computer founder Michael Dell . The FDIC agreed to retain some of
3710-555: The Origination Clause of the Constitution , the Senate then used H.R. 748 as a shell bill for the CARES Act, changing the content of the bill and renaming it before passing it. Unprecedented in size and scope, the legislation was the largest economic stimulus package in U.S. history, amounting to 10% of total U.S. gross domestic product. The bill is much larger than the $ 831 billion stimulus act passed in 2009 as part of
3816-572: The Trump International Hotel and Tower in Honolulu and its namesake in Chicago. Dune Capital Management and other lenders to the skyscraper in Chicago were sued by Trump before a settlement was reached. Mnuchin became a director of Kmart when it exited bankruptcy through an investment by ESL. When the company merged in 2005 with Sears to form Sears Holdings , he continued on the board of
3922-486: The real bills doctrine as a causative factor in the Great Depression . It is often argued that fiscal stimulus typically increases inflation , and hence must be counteracted by a typical central bank. Hence only monetary stimulus could work. Counter-arguments say that if the output gap is high enough, the risk of inflation is low, or that in depressions inflation is too low but central banks are not able to achieve
4028-605: The "no absolute tax cut for the upper class" phrase "was never a promise ... never a pledge ... it was what the president's objective was". Under the tax reform proposal, the top tax rate would decline from 39.6 to 35 percent, and the budget deficit would likely increase. During an appearance at the Milken Institute Global Conference on May 1, 2017, Mnuchin said the White House and House Republicans were united in views on tax reductions: "We're all on
4134-431: The $ 500 billion Economic Stabilization Fund. A business falls into this category if it is at least 20% owned or controlled by a person in the restricted group. Such businesses may nonetheless still be eligible for funds distributed through the $ 669 billion Paycheck Protection Program or through the $ 15 billion change to the tax code. Jared Kushner's businesses may generally be eligible for relief under
4240-399: The 2020–2030 period. The estimate includes: CBO reported that not all parts of the bill will increase deficits. "Although the act provides financial assistance totaling more than $ 2 trillion, the projected cost is less than that because some of that assistance is in the form of loan guarantees, which are not estimated to have a net effect on the budget. In particular, the act authorizes
4346-469: The Coronavirus Relief Fund (CRF) established by the CARES Act. The House initially passed a tax cut bill in mid-2019 and sent it to the Senate, which then used it as a shell bill and added an amendment in the nature of a substitute , fulfilling the constitutional requirement that all bills for raising revenue must originate in the House. After the new bill was released by the Senate, Speaker of
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4452-642: The Economic Stabilization Fund because, according to The New York Times , he usually owns less than 20% of his family's real estate projects. On April 21, the Trump Organization said it would not seek a Small Business Administration federal loan. (It was, however, seeking relief from the General Services Administration to which it normally pays rent of about $ 268,000 per month to operate the Trump International Hotel in
4558-690: The Federal Reserve return unused funds to the Treasury. After the enactment of the CARES Act, the Treasury Department and Internal Revenue Service (IRS) disbursed about 160.4 million payments totaling $ 269 billion by the end of April 2020, of which nearly 1.1 million payments, totaling almost $ 1.4 billion (0.5% of the total value of all payments), were sent to dead people. A Government Accountability Office report in June 2020 noted that, in
4664-506: The HUD's response, CIT/Financial Freedom foreclosed on 16,220 federally insured reverse mortgages from April 2009 to April 2016. This represented about 39% of all federally insured reverse mortgage foreclosures during that time. CRC estimated that Financial Freedom serviced only about 17% of the market and thus was foreclosing more than twice as often as its competitors. CIT Group disclosed to investors that it had received subpoenas from HUD's Office of
4770-465: The House Nancy Pelosi ( D - CA ) issued a statement that read in part: "We are beginning to review Senator McConnell's proposal and on first reading, it is not at all pro-worker and instead puts corporations way ahead of workers." Senate Minority Leader Chuck Schumer (D- NY ) criticized the fact that Democrats were not involved by Republicans in drafting the bill. Among Senate Republicans there
4876-660: The Inspector General in the third and fourth quarters of 2015. In November 2016, two non-profits filed a complaint with the Department of Housing and Urban Development, alleging redlining by OneWest Bank. In 2017 a leaked internal memo from the California attorney general's office was published, stating that the prosecutor's office had found more than a thousand violations of foreclosure law by OneWest during Mnuchin's tenure. The prosecutor, Kamala Harris , had declined to file
4982-569: The November 2016 election, Mnuchin, as the planned nominee for secretary of the treasury, stated in an interview with CNBC that "any reductions we have in upper-income taxes will be offset by less deductions so that there will be no absolute tax cut for the upper class", which Senator Ron Wyden (D-OR) subsequently called "The Mnuchin Rule" during his Senate confirmation hearing. Brad McMillan, chief investment officer for Commonwealth Financial Network , said
5088-496: The Republican Party, including donations to Paul Ryan and Donald Trump. Earlier in 2016, Mnuchin had donated $ 4,000 to Democrats Kamala Harris and Michael Wildes . Mnuchin was an early supporter of Trump, and attended his victory party after the New York Republican primary victory on April 19, 2016, for which he received a last-minute invitation. He was called the following day by Trump, who asked him if he wanted to be
5194-557: The Republican Party. After being appointed as the Trump campaign's main fundraiser, Mnuchin said: "It's a great privilege to be working with Mr. Trump to create a world-class finance organization to support the campaign in the General Election." Mnuchin worked with Republican National Committee counterpart Lewis Eisenberg on a late-developing joint operation for the committee and the Trump campaign. Before Mnuchin's appointment, no large-scale fundraising operation had been started for
5300-592: The Secretary of the Treasury to provide up to $ 454 billion to fund emergency lending facilities established by the Board of Governors of the Federal Reserve System. Because the income and costs stemming from that lending are expected to roughly offset each other, CBO estimates no deficit effect from that provision." On November 19, 2020, Treasury Secretary Mnuchin sent a letter to the Federal Reserve requesting that
5406-699: The Senate floor. After the nomination was announced, Mnuchin resigned from his position on the board of trustees of the Museum of Contemporary Art, Los Angeles , to which he had donated between $ 100,000 and $ 250,000. When the pick was announced, Mnuchin was also a member of the boards of UCLA Health System , the NewYork–Presbyterian Hospital , and the Los Angeles Police Foundation. The New York Times noted that Mnuchin's selection "fits uneasily with much of Mr. Trump's campaign attacks on
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#17328441649465512-797: The Special Inspector General for Pandemic Recovery (SIGPR) insofar as his constitutional powers as president enabled him to block the SIGPR's reports to Congress. According to The New York Times , the statement was consistent with Trump's "history of trying to keep damaging information acquired by an inspector general from reaching Congress". Part of the CARES act set aside $ 8 billion to federally-recognized "tribal governments". The Treasury Department earmarked about $ 500 million of those funds to go towards Alaska Native corporations (ANCs), which provided similar governance as typical tribal leadership in
5618-523: The Treasury Department said that future payments may be issued in the form of prepaid Visa debit cards rather than checks. The Act: Other pieces of legislation established an Emergency Rental Assistance (ERA) program. The Consolidated Appropriations Act, 2021 (Division N of P.L. 116-260) set aside $ 25 billion, while Section 3201 of the American Rescue Plan Act (P.L. 117-2) set aside an additional $ 21.5 billion. These were to be funded by
5724-541: The Treasury department said Mnuchin had ordered no analysis of the tax plan and that there was no Treasury analysis that showed that the tax cuts would pay for themselves. In December 2017, the treasury released a one-page report on the tax plan which acknowledged that the plan would not pay for itself through economic growth. In May 2018, Mnuchin instructed his staff to accept a non-low-income tract in Storey County, Nevada , as an Opportunity Zone shortly after attending
5830-495: The Trump campaign. The late-summer fundraising goal was close to $ 500 million. The New York Times described Mnuchin's role during the campaign as "relatively behind the scenes", and the newspaper noticed he never "seemed to seek the spotlight". During an interview, Mnuchin said that because of his connection to the Trump campaign, "a lot of people in California and New York [...] wanted to stop being friends". After Trump won
5936-545: The U.S. Senate as Secretary of the Treasury by a vote of 53–47. As Secretary of the Treasury, Mnuchin supported the Trump tax cuts and the tax reform of 2017 , and advocated reducing personal and corporate tax rates . In regard to regulatory policy, Mnuchin supported President Trump’s partial repeal of the Dodd–Frank Act , citing the complexity of the legislation. Steven Mnuchin was born on December 21, 1962, in New York City,
6042-444: The U.S. gross domestic product would "decline by 24% in the second quarter of 2020 because of the coronavirus pandemic". Deutsche Bank predicted the U.S. economy would shrink by 12.9% in the second quarter of 2020. Two relief bills were signed by President Trump early in 2020: $ 8 billion on March 6, and $ 192 billion on March 18. It was apparent to Congress that these would not be sufficient. A much larger third package, which
6148-531: The basis of having previously worked or lived in the U.S. Stimulus (economics) A stimulus is sometimes colloquially referred to as " priming the pump " or " pump priming ". During a recession , production and employment are far below their sustainable potential due to lack of demand . It is hoped that increasing demand will stimulate growth and that any adverse side effects from stimulus will be mild. Fiscal stimulus refers to increasing government consumption or transfers or lowering taxes, increasing
6254-703: The bilateral meeting “We discussed in detail many important issues in the context of our economic cooperation and strategic partnership between our countries.” Mnuchin is a member of the so-called "Big Six", a group of politicians convened to write a tax reform proposal that incorporated input from members of the House of Representatives, Senate, and White House. In addition to Mnuchin, the group consists of senators Orrin Hatch (R-UT) and Mitch McConnell (R-KY); representatives Kevin Brady (R-TX) and Paul Ryan (R-WI); and National Economic Council Director Gary Cohn . Shortly after
6360-443: The bill's strong unemployment provisions "encourage employees to be laid off instead of working". Senator Bernie Sanders then threatened to block the legislation and impose more stringent conditions for the $ 500 billion earmarked for corporate bailouts if the unemployment provision was removed by the proposed amendment of the four Republican Senators. To address these concerns, Senate leaders "agreed to allow an amendment vote on
6466-401: The board of directors of CIT as a result of his selection as nominee for Secretary of the Treasury. OneWest was criticized for aggressively foreclosing on homeowners. In the five years following Mnuchin's acquisition of OneWest, the bank foreclosed on 36,000 homes in California , leading local activists to begin calling Mnuchin "the foreclosure king." The high foreclosure rate might have been
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#17328441649466572-409: The boards of Kmart and Sears Holdings . During the financial crisis of 2007–2008 he bought failed residential bank Indymac , which he reorganized as OneWest Bank and resold, becoming embroiled in lawsuits over questionable foreclosures. Mnuchin joined Trump's presidential campaign in 2016, and was named National Finance Chairman for the campaign. On February 13, 2017, Mnuchin was confirmed by
6678-640: The committee. Michael E. Horowitz instead became the acting chair. By late April, there were at least four investigations into the government's response to the pandemic; on April 28, some inspectors general from the Pandemic Response Accountability Committee updated the House Oversight Committee about these investigations. The legislation also requires oversight by a separate Special Inspector General for Pandemic Recovery (SIGPR) who will monitor loans and investments from
6784-405: The company in 2002, Mnuchin held the following positions as a partner: Mnuchin left Goldman Sachs in 2002 after 17 years of employment, with an estimated $ 46 million of company stock and $ 12.6 million in compensation that he received in the months prior to his departure. After he left Goldman Sachs in 2002, Mnuchin briefly worked as vice-chairman of hedge fund ESL Investments , which
6890-456: The crisis via an earned income tax credit . On March 16, Republican senators Mitt Romney and Tom Cotton stated their support for a $ 1,000 basic income, Romney saying it should be a one-time payment to help with short-term costs. On March 17, the Trump administration indicated that some payment would be given to non-millionaires as part of a stimulus package. With guidance from the White House, Senate Majority Leader Mitch McConnell proposed
6996-452: The crisis". Early in the morning of Wednesday March 25, Senate leaders announced they had come to an agreement on a modified version of the CARES Act, the full text of which exceeds 300 pages. Mitch McConnell "announced news of a breakthrough on the Senate floor shortly after 1:30 a.m. Wednesday". Senator McConnell said on the floor, "[we have] reached a bipartisan agreement on a historic relief package for this pandemic ... this
7102-412: The criticism Massie continued to defend his actions, claiming that the act was full of pork barrel spending and that very little of the total money would actually go to citizens. The House passed the bill on March 27 by a near-unanimous, unrecorded voice vote . A few hours after the House passed the bill, it was signed into law by President Trump. In a signing statement , Trump suggested he could gag
7208-623: The different implications of these two conflicting explanations. President of the Federal Reserve Bank of Richmond , Jeffrey M. Lacker , with Renee Haltom, has criticized Bernanke's solution because "it encourages excessive risk-taking and contributes to financial instability." Thomas M. Humphrey and Richard Timberlake concentrated in their book "Gold, the Real Bills Doctrine, and the Fed: Sources of Monetary Disorder 1922–1938" on
7314-403: The election, he announced that Mnuchin would join the transition team on November 11. In a November 30, 2016, interview on CNBC , Mnuchin called it the Trump administration's job to "make sure that the average American has wage increases and good jobs". Furthermore, he said his priority was getting a sustained growth of GDP of 3% or 4%. He said in order to get there, "our number one priority
7420-418: The fact that five Republican Senators were in self-quarantine: Senator Rand Paul , who had tested positive for COVID-19 , as well as Senators Mike Lee , Mitt Romney, Cory Gardner , and Rick Scott . Nancy Pelosi indicated that the House would prepare its own bill, expected to exceed $ 2.5 trillion, as a counter-offer, which was criticized by Republicans as "a progressive wishlist seemingly unrelated to
7526-515: The fact that the Federal Reserve did not counteract the sudden reduction of money stock and velocity. Ben Bernanke argued, instead, that the problem was lack of credit , not lack of money, and hence, during the Great Recession , the Federal Reserve led by Bernanke provided additional credit, not additional liquidity (money), to stimulate the economy back on course. Jeff Hummel has analyzed
7632-650: The federal government alleging that OneWest had violated the Fair Housing Act by not lending money to African Americans, Hispanics, and Asians. In November 2016, after OneWest was sold to CIT, the California Reinvestment Coalition submitted a Freedom of Information Act request to the United States Department of Housing and Urban Development (HUD) to learn more about CIT's reverse mortgage subsidiary, Financial Freedom. According to
7738-416: The financial crisis, which sold for $ 6.7 billion. Mnuchin has been criticized for his use of offshore entities for investment purposes as a hedge-fund manager, which is a common practice in the industry. Mnuchin has stated: "In no way did I use [offshore entities] to avoid U.S. taxes." In 2009, a group led by Mnuchin bought California-based residential lender IndyMac, which had been in receivership by
7844-411: The financial industry". For example, an ad of Trump's campaign said Goldman Sachs' CEO had "robbed [the] working class". Mnuchin is the third former Goldman-Sachs executive to serve in the job, after Hank Paulson , under President George W. Bush , and Robert Rubin , under President Bill Clinton , in the 2000s and 1990s, respectively. During his Senate confirmation hearing on January 19, 2017, Mnuchin
7950-479: The floor". The Republican-led amendment to cap unemployment benefits failed in a 48–48 vote. Late in the night of March 25, 2020, the Senate passed the $ 2 trillion bill in a unanimous 96–0 vote. Four Republicans did not vote, namely John Thune , who was "feeling ill", Rand Paul (who had tested positive for COVID-19 ), and Mitt Romney and Mike Lee , who were both in isolation after having had contact with Senator Paul. On March 25, Pelosi said that "many of
8056-569: The future, we should focus on strengthening the economy today. Compounding growth will help ease projected shortfalls." On July 27, 2018, at the G20 Finance Ministers and Central Bank Governors Meeting in Argentina , Berat Albayrak , one of the 'Most Successful Economy Ministers' in the field of economy in international politics, met with the President. Berat Albayrak and Steven Mnuchin after
8162-633: The group of investors including Hudson Bay and Reverence Capital to invest over $ 1B in NYCB . Mnuchin became a board member of the bank, that was suffering from heavy losses. On March 14, 2024 Mnuchin announced that he's putting together the group of investors to buy TikTok . “This should be owned by U.S. businesses. There’s no way that the Chinese would ever let a U.S. company own something like this in China,” Mnuchin said. In 2004, Mnuchin founded Dune Entertainment as
8268-452: The hurry to distribute payments, the agencies had not followed post-2013 financial control safeguards to prevent payments to the dead or other ineligible persons. The report added that "agencies have made only limited progress so far in achieving transparency and accountability goals." The IRS put a notice on their website that incarcerated individuals did not qualify and withheld or retrieved payments from many prisoners. On September 24, 2020,
8374-489: The interview, he also said he wants to "strip back parts of Dodd–Frank " because he argued it was too complicated, and it prevented banks from lending. He called the stripping back of Dodd–Frank "the number-one priority on the regulatory side". David Levinthal, a senior political reporter for Business Insider stated in a 2020 article at the Center for Public Integrity that Mnuchin lacks a definite political orientation and that he
8480-412: The investment bank Goldman Sachs where his father, Robert Mnuchin , was a general partner . Mnuchin worked at Goldman Sachs for 17 years, eventually becoming its chief information officer . After he left Goldman Sachs in 2002, he worked for and founded several hedge funds and launched Dune Entertainment , a film production company that financed several films for 20th Century Fox . He later served on
8586-616: The lower 48 states. Three native Indian tribes sued on the basis that under the Indian Self-Determination and Education Assistance Act of 1975 (ISDA), ANCs were not federally-recognized tribal governments and should not be eligible for CARES funds. The case was eventually heard by the United States Supreme Court , which ruled in June 2021 that ANCs did qualify as tribal governments under the ISDA, and thus eligible to receive
8692-540: The more problematic assets of the bank, and signed a loss-sharing agreement. The FDIC was estimated to be required to pay $ 2.4 billion to IndyMac under the shared loss agreement. After purchasing IndyMac, renamed OneWest Bank , Mnuchin moved into a 20,000 square foot house in Bel Air to begin his tenure as CEO and chairman. OneWest then bought several other failed banks including First Federal Bank of California in 2009 and La Jolla Bank in 2010. Furthermore, OneWest bought
8798-411: The national finance chairman of his campaign. Mnuchin, who later said in an interview he had known Trump "for over fifteen years", accepted the offer. In a statement announcing the appointment, Trump said: "Steven is a professional at the highest level, with an extensive and very successful financial background." He also said Mnuchin would bring "unprecedented experience and expertise" that would benefit
8904-475: The new company until his nomination as Treasury secretary in 2016. After Sears Holdings' bankruptcy in 2018 the company's estate sued the former management, including Lampert and Mnuchin, for " asset stripping " during their tenure. The lawsuit ended in 2022 with a $ 175 million settlement in the estate's favor. Mnuchin was outbid by Lone Star Funds on a portfolio of residential mortgage-backed collateralized debt obligations being sold by Merrill Lynch during
9010-437: The people who are working every day, just a blank check to everybody in America making up to $ 75,000." On the evening of Sunday, March 22, 2020, Senate Democrats blocked the bill in a key procedural vote; the vote was 47–47, while 60 votes were needed to proceed. Immediately thereafter, " Dow futures hit their 5% 'limit down' overnight, and were off 600 points at one stage Monday morning." In response, Mitch McConnell announced
9116-629: The presidential campaign of Donald Trump in 2016, Mnuchin had been involved in politics only by donating money to campaigns. Between 1995 and 2014, he donated over $ 120,000 to political organizations, PACs, politicians, and political parties. His contributions to candidates included 11 donations to Republicans and 36 donations to Democrats . The campaigns of Al Gore , Hillary Clinton , John Kerry , Barack Obama , and Mitt Romney were among those to which he donated money. Mnuchin later stated most of those donations were favors for friends. Between June and September 2016, Mnuchin donated over $ 400,000 to
9222-493: The provisions in there have been greatly improved because of negotiation," and hoped to pass the bill by unanimous consent. Representative Thomas Massie , a Republican from Kentucky, attempted to maneuver for a roll-call vote , but the quorum present did not support the idea. Massie's threat to demand a recorded vote nonetheless "compelled dozens, if not hundreds, of lawmakers to return to Capitol Hill from their home districts, navigating across interstates and through airports at
9328-410: The rate of growth of public debt . Supporters of Keynesian economics assume the stimulus will cause sufficient economic growth to fill that gap partially or completely via the multiplier effect. Monetary stimulus refers to lowering interest rates, quantitative easing , or other ways of increasing the amount of money or credit. Milton Friedman argued that the Great Depression was caused by
9434-968: The required inflation rate without fiscal stimulus by the government. Monetary stimulus is often considered more neutral: decreasing interest rates make additional investments profitable, but yet only the most additional investments, whereas fiscal stimulus where the government decides the investments may lead to populism via public choice theory , or corruption . However, the government can also take externalities into account, such as how new roads or railways benefit users who do not pay for them, and choose investments that are even more beneficial although not profitable. Supporters of Keynesian economics are typically strongly in favor of stimulus. Austrian economic school and Rational expectations economists are typically against stimulus. Steven Mnuchin Steven Terner Mnuchin ( / m ə ˈ n uː ʃ ɪ n / mə- NOO -shin ; born December 21, 1962)
9540-607: The response to the Great Recession . The Congressional Budget Office estimates that it will add $ 1.7 trillion to the deficits over the 2020–2030 period, with nearly all the impact in 2020 and 2021. Lawmakers refer to the bill as "Phase 3" of Congress's coronavirus response. The first phase was the Coronavirus Preparedness and Response Supplemental Appropriations Act that provided for vaccine research and development. The Families First Coronavirus Response Act , which focused on unemployment and sick leave compensation,
9646-458: The same page. On 80% of the details, we're in agreement. Another 20%, we need to work through." During a conference in Ottawa on June 9, Mnuchin said government tax receipts were "coming in somewhat lower", but that this did not concern the administration. While appearing on ABC News on July 9, Mnuchin confirmed the administration was not considering a tax increase on the American upper class and
9752-414: The second key procedural vote on the CARES Act, a cloture vote to end debate, on Monday, March 23; 60 votes were needed, but it failed 49–46. Both procedural votes were on a "shell" bill framed to repeal an Obamacare tax which passed the House on July 17, 2019. For procedural reasons, the text was replaced by the new language passed by the Senate. Procedural votes for the bill were made more difficult by
9858-479: The second-youngest son in his family. Mnuchin's family is Jewish. He is the son of Robert E. Mnuchin of Washington, Connecticut , and Elaine Terner Cooper of New York. Robert Mnuchin was a partner at Goldman Sachs in charge of equity trading and a member of the management committee. He is also the founder of an art gallery in New York City, the Mnuchin Gallery. Mnuchin's great-grandfather, Aaron Mnuchin,
9964-443: The serious and hard work, the bill is much better off than where it started." The result of the agreement between Senate leaders and the White House was a $ 2 trillion bill that "is the largest economic relief bill in U.S. history". The bill was criticized by Representative Alexandria Ocasio-Cortez and New York Governor Andrew Cuomo . Republican Senators Lindsey Graham , Tim Scott , Ben Sasse , and Rick Scott expressed concern
10070-445: The set-aside funds. The legislation required the creation of a Pandemic Response Accountability Committee. On March 30, the inspectors general selected Glenn Fine , who had been an inspector general in four presidential administrations and who was serving as acting Pentagon inspector general , to chair the committee. One week later, Trump removed Fine from his position as acting Pentagon inspector general, making him ineligible to chair
10176-405: The tax reform proposal before Congress after it resumed operations on September 5, and Mnuchin added that "lowering the top [earners'] rate [would be offset by] elimination of huge deductions. So, for most people in the top rate, they're not going to get a tax cut." Mnuchin walked back the "Mnuchin Rule" in a September 2017 interview with CNN prior to the release of the proposed tax reforms , saying
10282-609: The trade group representing the U.S. airline industry requested a $ 50 billion federal bailout. On March 18, the National Restaurant Association wrote the President and Congress with an estimate that "the industry's sales will decline by $ 225 billion during the next three months, which will prompt the loss of between five and seven million jobs," accompanied by a request of $ 145 billion of aid to restaurants. In an effort to gain Republican support for
10388-506: The upcoming tax plan would finance itself. Mnuchin advocated for the Tax Cuts and Jobs Act of 2017 , a bill expected to add $ 1.5 trillion to the deficit. Mnuchin asserted that the bill would pay for itself by causing explosive economic growth; he promised the treasury was working on an analysis that showed that, and that the analysis would be made public before Congress voted on the legislation. However, on November 30, 2017, sources within
10494-504: The work of the SIGPR. Amidst reports that Trump would nominate White House lawyer Brian Miller for this job, Montana Senator Jon Tester and Utah Senator Mitt Romney drafted a letter to the president requesting a different, independent Special Inspector General. Miller was confirmed by the Senate on June 2. The Congressional Budget Office provided a preliminary score for the CARES Act on April 16, 2020, estimating that it would increase federal deficits by about $ 1.7 trillion over
10600-488: Was "significant debate and disagreement" regarding " Donald Trump 's proposal to provide most Americans with $ 1,000-plus checks to boost spending and stimulate the economy". Senator Richard Shelby (R- AL ), the Republican chair of the Senate Appropriations Committee , stated "I personally think that if we're going to help people we should direct the cash payments maybe as a supplement to unemployment, not to
10706-467: Was criticized by Democrats for OneWest's foreclosure practices. Mnuchin said: "Since I was first nominated to serve as treasury secretary, I have been maligned as taking advantage of others' hardships in order to earn a buck. Nothing could be further from the truth". During the hearing, it was also noted that Mnuchin had failed to disclose $ 95 million of real estate that he owned and his role as director of Dune Capital International, an investment fund in
10812-480: Was made to set aside $ 250 billion for tax rebates and the same amount for unemployment. On April 21, 2020, the Senate approved the Paycheck Protection Program and Healthcare Enhancement Act , providing $ 484 billion in additional funding to the existing Paycheck Protection Program, and President Trump signed it into law three days later. On May 15, 2020, the Democratic-controlled House passed
10918-550: Was phase 2. All three phases were enacted the same month. An additional $ 900 billion in relief was attached to the Consolidated Appropriations Act, 2021 , which was passed by Congress on December 21, 2020, and signed by President Trump on December 27, after some CARES Act programs being renewed had already expired. In response to the COVID-19 pandemic, dramatic global reduction in economic activity occurred as
11024-409: Was sought by candidate Trump due to his financial connections and ability to raise campaign funds. On November 30, 2016, Donald Trump announced on his website that he would nominate Mnuchin as United States Secretary of the Treasury . In the statement, Trump called Mnuchin a "world-class financier, banker, and businessman", and he said Mnuchin played an important role in developing his "plan to build
11130-467: Was to become the CARES Act, was negotiated. In mid-March 2020, Democratic politicians Andrew Yang , Alexandria Ocasio-Cortez , and Tulsi Gabbard advocated for universal basic income in response to the COVID-19 pandemic in the United States ; Gabbard suggested that it be a temporary measure until the crisis subsides. On March 13, Democratic representatives Ro Khanna and Tim Ryan introduced legislation to provide payments to low-income citizens during
11236-406: Was worried about AI displacing jobs, replied: 'not at all ... I think we are so far away from that' — 50 or 100 years — 'it's not even on my radar screen'." Former treasury secretary Lawrence Summers was among critics of the statement, likening it to climate denial and creationism . Fortune columnist Alan Murray , noting the dispute, said he thought "the core of the misunderstanding
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