The stimulus talks are not dead. Treasury Secretary Steven Mnuchin shared the status of the talks on Capitol Hill with CNBC before handing the baton over to bitcoin bull Mike Novogratz for his response. And the Galaxy Digital founder didn’t pass up an opportunity to tout bitcoin.
According to Mnuchin, the disagreement among lawmakers on the latest round of stimulus money surrounds the amounts, after the government already passed a $3 trillion deal and the Federal Reserve turned extremely dovish. But the Treasury Secretary says he is looking forward to receiving a bipartisan proposal from the House of Representatives this afternoon.
Mnuchin wouldn’t promise that they’d reach an agreement, and admitted that “politics is getting in the way.”
Even though lawmakers are duking it out over the next round of stimulus, Secretary Mnuchin touted the resilient economy in the face of the pandemic. He pointed to the unemployment rate of 8.4%, which is much lower than dire predictions calling for 25% unemployment. He described the rebound as “great,” saying that Q3 would be “very strong” but certain sectors of the economy, including travel, hotels and small businesses, will need more work.
Stocks, Gold and Bitcoin
Galaxy Digital CEO Mike Novogratz was waiting in the wings of Treasury Secretary’s update, telling CNBC that Mnuchin did a “pretty good job of outlining what’s going on in the economy.” He agreed that the economic rebound has been faster than expected, adding that there are parts of the economy that are still hurting, like restaurants as well as state and local governments.
He said the financial markets have been doing great, with the Dow Jones Industrial Average and S&P 500 roughly flat for the year, while the Nasdaq is up by some 20% — though its gains have been fueled by a few select stocks. Novogratz expects that if Joe Biden wins the election, the stock market will go down initially because the Democratic candidate plans to raise capital gains taxes.
Novogratz stayed true to his store-of-value roots, reminding the world that he still has a gold position and he loves crypto as a hard asset. According to him, “being short the dollar makes a lot of sense.”