CNBC Excerpts: Treasury Secretary Steven Mnuchin speaks with CNBC’s “Squawk Box” Today on Oracle’s bid for TikTok, coronavirus stimulus, the housing market and more.
Q2 2020 hedge fund letters, conferences and more
Treasury Secretary Steven Mnuchin on Oracle winning bid for TikTok's U.S. assets
Treasury Secretary Mnuchin: Now is not the time to worry about shrinking the deficit
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MNUCHIN ON ORACLE'S BID FOR TIKTOK
WE DID GET A PROPOSAL OVER THE WEEKEND THAT INCLUDES ORACLE AS THE TRUSTED TECHNOLOGY PARTNER WITH ORACLE MAKING MANY REPRESENTATIONS FOR NATIONAL SECURITY ISSUES. THERE IS ALSO A COMMITMENT TO MAKE TIKTOK GLOBAL AS A U.S. HEADQUARTERED COMPANY WITH 20,000 NEW JOBS. I’M NOT GOING TO GO INTO THE ENTIRE PROPOSAL. WE WILL BE REVIEWING THAT AT THE COMMITTEE THIS WEEK AND THEN WE’LL BE MAKING A RECOMMENDATION TO THE PRESIDENT AND REVIEWING IT WITH HIM.
MNUCHIN ON THE ECONOMY
CLEARLY WE ARE HAVING A GREAT REBOUND. WE ARE GOING TO HAVE A VERY STRONG THIRD QUARTER. BUT THERE IS ALSO CLEARLY AREAS OF THE ECONOMY, PARTICULARLY THE TRAVEL AREA, ENTERTAINMENT, HOTELS, SMALL BUSINESSES, RESTAURANTS THAT ARE GOING TO NEED MORE WORK. THE PRESIDENT AND I ARE GOING TO CONTINUE TO FIGHT FOR THOSE PARTS OF THE ECONOMY.
MNUCHIN ON SPEAKER PELOSI
I THINK THERE IS A COMPROMISE IF THE SPEAKER IS WILLING TO MOVE FORWARD. I AM SOMEWHAT CONCERNED THAT SHE’S AFRAID THAT ANY DEAL WILL BE GOOD FOR THE PRESIDENT AND OBVIOUSLY, WE HAVE POLITICS THAT ARE GETTING IN THE WAY.
MNUCHIN ON STIMULUS
WE'RE ALWAYS CONSIDERING EXECUTIVE ORDERS AND THE PRESIDENT IS GOING TO MAKE SURE HE USES HIS AUTHORITY TO DO WHATEVER HE CAN TO HELP SMALL BUSINESSES. BUT THERE ARE LIMITATIONS. AND THAT’S WHY IT’S VERY IMPORTANT THAT WE HAVE STIMULUS THAT HELPS THE AREAS OF THE ECONOMY THAT NEED SUPPORT. THE GOOD NEWS IS THAT WE ARE REBOUNDING IN A VERY, VERY SIGNIFICANT WAY AND AMERICANS ARE BEGINNING TO SEE THE BENEFITS OF THE ECONOMY REOPENING.
MNUCHIN ON HOUSING
HOUSING IS NOTHING LIKE IT WAS DURING THE FINANCIAL CRISIS. THAT WAS A SITUATION WHERE YOU SAW A TREMENDOUS AMOUNT OF OVERLEVERAGED LENDING, YOU SAW REAL CREDIT PROBLEMS. WE'VE HAD A COMPLETE CHANGE ON THAT. WE HAVE A SITUATION WITH GSE REFORM WHERE THE GSEs, BOTH FANNIE MAE AND FREDDIE MAC, HAVE ALLOWED FORBEARANCE FOR PEOPLE AFFECTED BY COVID. YOU SEE THE PRESIDENT’S EXECUTIVE ORDER THAT IMPACTS OVER 40 MILLION RENTAL UNITS. SO I THINK HOUSING IS THE BRIGHT SPOT OF THE ECONOMY.
MNUCHIN ON THE FED
NOW IS NOT THE TIME TO WORRY ABOUT SHRINKING THE DEFICIT OR SHRINKING THE FED BALANCE SHEET. THERE WAS A TIME WHERE THE FED WAS SHRINKING THE BALANCE SHEET AND COMING BACK TO NORMAL. THE GOOD NEWS IS THAT GAVE THEM A LOT OF ROOM TO INCREASE THE BALANCE SHEET, WHICH THEY DID. AND I THINK BOTH THE MONETARY POLICY WORKING WITH FISCAL POLICY AND WHAT WE WERE ABLE TO GET DONE IN AN UNPRECEDENTED WAY WITH CONGRESS IS THE REASON WHY THE ECONOMY IS DOING BETTER.
