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US needs more ‘helicopter money’ to cushion coronavirus impact, says Anthony…

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US needs more 'helicopter money' to cushion coronavirus impact, says Anthony...

The United States needs more "helicopter money" to help its economy recover from the effects of the coronavirus pandemic, said Anthony Scaramucci, a hedge fund investor who briefly served as head of communications for President Donald Trump's White House.

Helicopter money refers to a type of monetary stimulus of last resort, which involves printing large sums of money and distributing it to the public to encourage people to spend more and thus boost the economy.

"I think they need to invest more money in helicopters," Scaramucci, founder and managing partner of Skybridge Capital, told CNBC "Capital Connection" on Thursday.

He added that his company's calculations show that each adult should receive $ 3,000 and each child $ 1,500. That would be more than the $ 1,200 and $ 500, respectively, already announced as part of a $ 2 trillion fiscal stimulus package.

In addition to fiscal measures, the US Federal Reserve cut interest rates close to zero and pledged to buy assets "in the necessary amounts". These are measures that have injected a lot of money into the economy, said Scaramucci.

"The Fed has injected about $ 1 trillion dollars in the past three weeks," he said.

It helped investors become more optimistic, said Scaramucci, adding that it could pave the way for financial markets to recover going forward.

& # 39; Smooth opening & # 39; of the US economy

The United States has reported more than 400,000 cases of coronavirus disease – formally called COVID-19 – and more than 14,000 deaths, according to data compiled by Johns Hopkins University. The number of reported cases in the country is the highest in the world, the data showed.

Measures of social distance and quarantine of varying degrees have been implemented across the country, disrupting the world's largest economy.

The Trump administration is eager to reopen parts of the U.S. economy. Scaramucci predicted that measures to restrict people's mobility could start to decline in the first week of May.

"I think it will be a smooth opening of the American economy in the first week of May, people will be in masks and maybe two weeks later, in hot zones like New York, New Orleans and Detroit," he said.

"It will be a slow process on the way back, but getting people back to work, I think it will cheer up and improve the economic outlook," he added.

– Silvia Amaro, from CNBC, contributed to this report.

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