Treasury Secretary Mnuchin says the Trump administration still supports a stimulus package that includes direct payments

• Treasury Secretary Steven Mnuchin said the Trump administration still supports another stimulus package that includes direct payments.
• Mnuchin and Fed Chair Jerome Powell said the economy needed another stimulus package to keep it afloat.
• Many economists are also pressing lawmakers to approve additional federal spending to keep the economy afloat.

Treasury Secretary Steven Mnuchin said on Tuesday the Trump administration still backs another stimulus package, one that includes direct payments.

During a hearing with the House Financial Services Committee, Mnuchin testified along with Jerome Powell, the Federal Reserve chairman. Both said the economy was recovering but that the risk of further damage remained because of the pandemic.

"The president and I remain committed to providing support for American workers and businesses," Mnuchin said at the hearing. "I believe a targeted package is still needed, and the administration is ready to reach a bipartisan agreement."

He also said "the administration does support another stimulus payment," similar to the $1,200 check that the government sent to over 150 million people in April and May.

Powell said he believed "it is likely more fiscal support will be needed." He credited the Coronavirus Aid, Relief, and Economic Security Act with playing a large part in stabilizing the economy with direct payments and boosted unemployment benefits.

The economy has partially rebounded from the depths it reached in the spring. It has recovered nearly half of the jobs shed in March and April, as many economists urge lawmakers to approve additional spending to keep the economy afloat.

Nearly 29 million people are still receiving some form of unemployment benefits, according to the Labor Department. Experts say another wave of small-business failures could come in the fall without congressional action.

But negotiations on a fourth rescue package remain stalled on Capitol Hill. Democrats and the White House are still about $1 trillion apart in their spending proposals, and there are few signs the matter will be resolved anytime soon.

President Donald Trump urged Republicans last week to support a bigger economic-aid package, but many GOP senators doubled down against it. House Speaker Nancy Pelosi said in a recent New York Times podcast interview that Democrats were holding out for a larger stimulus agreement.

"We have to meet their needs, not give the president a chance to just say, 'I'm going to put my name on a check, send it out, and don't talk to me about food, rent, first responders, healthcare workers, the virus, or anything else,'" Pelosi said. "That's all he wants, is his name on a check that goes out."

Republicans and Democrats appear to be refocusing instead on legislation to keep the government funded through the end of the year. A failure to pass the stop-gap measure would cause many federal agencies to start closing their doors in eight days.