Although the economy seems to be teetering on the edge, U.S. Secretary of the Treasury Steven Mnuchin is not concerned.
As BeInCrypto has been reporting recently, the Federal Reserve has been on something of a printing spree. It recently announced it would be offering ‘unlimited QE‘ to keep markets afloat. Moreover, U.S. banks now have no reserve requirements relative to their balances for the first time.
Although financial markets have managed to rally in the past few days, they are now forced to face the reality of the structural issues plaguing the economy.
Although these issues present the United States with one of the most unique crises in its history, the Treasury Secretary is telling Americans to simply ignore the data.
In a statement after the record-setting weekly unemployment numbers, Mnuchin told reporters that the data was simply “not relevant.” [CNN] This is because the numbers came in shortly before the new stimulus bill passed by the Senate. It’s unclear, however, how that bill changes the reality of unemployment in the United States as of now.
Fed Tries to Reassure the Anxious Public
Mnuchin’s comments come amid a new PR blitz undertaken by the Federal Reserve. Claiming that the financial body has an “unlimited amount of cash,” it is trying to calm those who have deposits in banks. Clearly, there seems to be a fear that there may be bank runs if panic sets in.
Such a crisis has forced many to reconsider how they understand currency and their purchasing power. As a result, gold and Bitcoin (BTC) continue to do well amid this difficult time. However, it remains to be seen whether this trend will hold. Bitcoin, for example, experienced a drastic drop two weeks ago which shattered confidence.
This is, indeed, the perfect moment for digital sectors like the blockchain space to flourish and thrive. However, shocks in the short-term still represent a major hurdle that will likely affect all sectors across the board in the coming months.