Boeing, coronavirus push White House growth forecast lower: Mnuchin

'There's no question that the virus will have some impact on global growth and some impact on the U.S.,' Treasury secretary says

Boeing's woes and the Chinese coronavirus outbreak have caused the White House to lower its projections for the U.S. economy, Treasury Secretary Steven Mnuchin said on "Mornings with Maria" Thursday.

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"I think our projections have been reduced, because of Boeing and other impacts, so it will be lower," Mnuchin said. "We would have hit 3% ... There's no question that the virus will have some impact on global growth and some impact on the U.S."

TickerSecurityLastChangeChange %
BABOEING COMPANY161.14-6.39-3.81%

CHINA'S VIRUS OUTBREAK WEIGHS ON GLOBAL BUSINESS

He said there are many unknowns about coronavirus' impact but that "after another two weeks we'll have a much better way to model how this virus spreads."

Mnuchin said in mid-January Boeing would have an outsized impact on the U.S. economy, before the coronavirus outbreak was dominating headlines.

Mnuchin's claims come after President Trump's chief economic adviser Larry Kudlow said exports in the "phase one" trade deal with China will be slowed down because of the coronavirus on "Mornings with Maria" on Tuesday.

A medical worker in a protective suit writes on a tube after collecting a sample for nucleic acid tests from a suspected virus patient at a hotel being used to place people in medical isolation in Wuhan in central China's Hubei Province, Tuesday, Feb

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"It is true the 'phase one' trade deal, the export boom from that trade deal, will take longer because of the Chinese virus," Kudlow said. "On the other hand, the North American trade deal, USMCA, is going to unlock tremendous investment ... Manufacturers will benefit."

Chinese Ambassador Huang Ping responded to the comments Tuesday, saying he hopes the virus will not affect the trade deal. Huang said he did not know if China would use a clause about unforeseeable events in the trade deal to help the country meet its commitments.

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