U.S. Treasury Secretary Steven Mnuchin said on Monday he sees no need for the country to buy back debt and that he plans to borrow money long-term to lock in low interest rates, as the coronavirus pandemic rocks the economy.
“One of the reasons I do feel comfortable with us spending all this money is because interest rates are very low. And we’re taking advantage of long-term rates,” Mnuchin said in a CNBC interview, adding that the United States plans to refinance all its debt to lock in low rates.
The Treasury last week announced a record-busting plan to borrow $3 trillion during the April-June quarter to fund coronavirus economic rescue programs and cover a massive drop in revenues. It launched a new 20-year bond to extend maturities.. The Treasury chief said it was unclear whether May unemployment numbers could be worse than the 14.7% recorded in April, but struck an optimistic tone about businesses reopening over the summer.
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