SPONSORED:

On The Money: Mnuchin sees 'strong likelihood' of needing another COVID-19 relief bill | 2.4 million more Americans file new jobless claims | Top bank regulator abruptly announces resignation

On The Money: Mnuchin sees 'strong likelihood' of needing another COVID-19 relief bill | 2.4 million more Americans file new jobless claims | Top bank regulator abruptly announces resignation

Happy Thursday and welcome to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

Write us with tips, suggestions and news: slane@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @NJagoda and @NivElis.

ADVERTISEMENT

THE BIG DEAL — Mnuchin sees 'strong likelihood' of needing another COVID-19 relief bill: Treasury Secretary Steven MnuchinSteven Terner MnuchinSunday shows preview: Trump, Biden gear up for final sprint to Election Day Hillicon Valley: Treasury sanctions Russian group accused of targeting critical facilities | Appeals court rules Uber, Lyft must comply with labor laws | Biden: Countries that target US elections will 'pay a price' Finger-pointing picks up in COVID-19 relief fight MORE on Thursday said there is a "strong likelihood" that another coronavirus relief bill will be needed as more states start to reopen and the economy struggles to stabilize.

"We're going to carefully review the next few weeks," Mnuchin said in an interview with The Hill's Bob CusackRobert (Bob) CusackThe Hill's 12:30 Report - Sponsored by The Air Line Pilots Association -Trump enters debate week after NYT obtains his tax returns The Hill's Campaign Report: Biden asks if public can trust vaccine from Trump ahead of Election Day | Oklahoma health officials raised red flags before Trump rally Shakespeare Theatre Company goes virtual for 'Will on the Hill...or Won't They?' MORE during a virtual event. "I think there is a strong likelihood we will need another bill, but we just have $3 trillion we're pumping into the economy."

"We're going to step back for a few weeks and think very clearly how we need to spend more money and if we need to do that," he added.

Mnuchin’s comments — which came during The Hill’s Advancing America’s Economy Summit, sponsored by Wells Fargo and Siemens — follow those of White House economic adviser Kevin Hassett, who said earlier this week that he thinks another coronavirus bill might not be necessary. The Hill’s Naomi Jagoda has more here.

On Capitol Hill, Republicans and Democrats are divided over how to tackle additional legislation.

ADVERTISEMENT

More from Mnunchin’s interview:

  • Mnuchin said Thursday that “we do need to fix the quirk” with the unemployment benefits expansion that has resulted in some people receiving more in benefits than they did in wages when they were working.
  • He also said that the Trump administration is working with Congress on lengthening the amount of time that businesses have to use Paycheck Protection Program funding, and that there is bipartisan support to extend the period from 8 weeks to 10 or 12 weeks.

LEADING THE DAY

2.4 million more file new jobless claims: Another 2.4 million Americans filed new claims for unemployment insurance last week as the U.S. suffers through the highest level of joblessness since the Great Depression, according to data released Thursday by the Labor Department.

  • Between May 10 and 16, the total number of seasonally adjusted initial applications for jobless benefits totaled 2,438,000, a 249,000-claim decrease from the previous week’s revised total of 2,548,000 claims. The new wave of applications brings the total number of initial unemployment claims since the week ending March 22 to 38.6 million.
  • The non-seasonally adjusted number of claims in the week ending May 16 totaled 2,174,329, down 182,265 claims from the previous week. Some economists argue that the non-seasonally adjusted figure better reflects the scale of the damage wrought by the coronavirus pandemic.
  • Thirty-five states also reported 2,226,921 initial claims for Pandemic Unemployment Assistance, an expanded benefits program for workers who lost their jobs because of the coronavirus outbreak but do not qualify for unemployment insurance.

I have more here.

Top bank regulator announces abrupt resignation: Comptroller of the Currency Joseph Otting announced his resignation Thursday, vacating his perch at a powerful bank regulator as the pandemic-driven economic collapse threatens the financial system.

The Office of the Comptroller of the Currency (OCC) said in a statement that Otting would leave the agency on May 29, just more than halfway through his five-year term at the independent bank regulator. 

Sudden departure: 

  • Otting’s announcement comes two days after several media outlets reported his plans to resign and one day after breaking from two other bank regulators to release new rules for how banks should comply with the Community Reinvestment Act, a 1977 anti-redlining law. 
  • Neither the comptroller nor the OCC have explained why Otting is stepping down, particularly as banks brace for widespread business closures, bankruptcies, foreclosures and loan losses that could threaten their ability to lend and roil the financial system.
  • Federal bank regulators and industry advocates say that while the U.S. banks are well capitalized and should be able to weather the downturn, weak points elsewhere in the financial system could cause broader issues.

I have more on Otting’s decision here.

GOOD TO KNOW