Treasury Secretary Steven Mnuchin told Jim Cramer Monday that “there will be a huge amount of pent-up demand” for stocks when the threat of the coronavirus is contained.
“Look for companies that have a ton of liquidity. An Apple will have customers,” he continued. “That is just a given. The goal is not to bail out companies.”
“The banking system can handle this after the Fed’s actions,” Secretary Mnuchin said. “Now it is a question of liquidity for those who need it… To keep entities from closing … and help the working person. Our stimulus is designed to let small businesses keep people on payroll. … We’ll always be thinking about what happens after we get through this.”
He added that the Fed was right to cut US interest rates to Zero and introduce a $700-B QE program.
“The Fed is ahead of the issues and I’m grateful; nobody has to pull money out of the banks,” Secretary Mnuchin said. “Liquidity for small businesses is chief priority. … Restaurant and bar owners, for example — we are trying to get money to them to tide them over.”
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