Chris Wallace Confronts Mnuchin: ‘Are Your Rosy Predictions Based on Economic Reality or the November Election?’

Chris Wallace pressed Treasury Sec. Steve Mnuchin Sunday morning on his “rosy predictions” about economic recovery in the second half of 2020.

Wallace noted the official unemployment rate for April is 14.7%, but there’s several factors it does not include. So he asked Mnuchin what the real unemployment rate in the U.S. is right now.

“These are very, very large numbers, these are not large numbers because of the economy wasn’t doing well, these are large numbers because we’ve shut down the economy and I would just highlight the biggest component of this was in travel and retail and leisure and, not a surprise, we’ve closed down major parts of the economy,” Mnuchin said.

Wallace pressed again and asked if we’re “talking close to 25 percent at this point, which is Great Depression levels.”

Mnuchin conceded “we could be” but again said, “We closed down the economy, so it wouldn’t be a surprise if you closed down the economy that in half of the workforces, half the people didn’t work. And that’s why we are very focused on rebuilding this economy and getting it back to where it was”

He predicted that the U.S. will see “a better third quarter, a better fourth quarter,” and a “great year” next year.

Wallace questioned Mnuchin about the economic optimism coming not just from him but President Donald Trump:

“I’ve got to tell you, and I want to ask about a number of signs which indicate that the recovery is going to be much slower than that, sir. Job losses are not just in hospitality industry — airlines, restaurants, as you would expect — but they’re more widespread. The white collar and government sector, 3 million Jobs lost. Major retailers like Neiman Marcus and J Crew declaring bankruptcy. And the nonpartisan Congressional Budget Office says unemployment at the end not of this year, but of 2021, will still be 9.5 percent. Question, are your rosy predictions based on economic reality or the November election?”

Mnuchin took issue with the “rosy” characterization and said the second quarter is going to be “very, very bad’ before the country sees a bounce back.

You can watch above, via Fox News Sunday.