US Congress in position to spend big on coronavirus relief: Federal Reserve official

WION Web Team New Delhi, Delhi, India Aug 02, 2020, 10.42 PM(IST)

US Federal Reserve hikes interest rates Photograph:( Reuters )

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"That actually means that we have a lot more resources as a country to support those who have been laid off," he said.

A top Federal Reserve said on Sunday that US Congress is in position to spend a huge amount on coronavirus relief efforts because the nation's budget gap can be financed without relying on foreign borrowing, given how much Americans are saving.

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"Those of us who are fortunate enough to still have our jobs, we're saving a lot more money because we're not going to restaurants or movie theatres or vacations," Neel Kashkari, president of the Minneapolis Federal Reserve Bank, told CBS' "Face the Nation."

"That actually means that we have a lot more resources as a country to support those who have been laid off," he said.

US House of Representatives, led by the Democrats, has approved a $3 trillion relief bill in May, however, many in Senate Republicans have expressed concerns about mounting debt, countered by proposing a $1 trillion aid package last week.

Treasury Secretary Steven Mnuchin, in an interview with ABC's "This Week", said that President Trump would spend what was needed, but the deficit was a factor. 

"There's obviously a need to support workers and support the economy," he said. "On the other hand, we have to be careful about not piling on enormous amount of debts for future generations."

(Inputs from Agency)