Fed’s Powell, Treasury’s Mnuchin to testify June 30 before House panel

FILE PHOTO: U.S. Federal Reserve Chairman Jerome Powell speaks to reporters after the Federal Reserve cut interest rates in an emergency move designed to shield the world’s largest economy from the impact of the coronavirus, during a news conference in Washington, U.S., March 3, 2020. REUTERS/Kevin Lamarque

June 22, 2020

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Treasury’s JobKeeper modelling based on ‘worst case scenario’

Treasury's JobKeeper modelling based on 'worst case scenario'

The wide discrepancy between what Treasury predicted the JobKeeper scheme would cost compared to the actual figure was due to the department giving the government the “worse case economic scenario being modelled at the time”, according to Sky News Political Editor Andrew Clennell.

The wage subsidy program was initially estimated to cost $130 billion and cover 6.5 million workers.

The scheme was actually adopted by around 3 million workers and cost the federal government $70 billion.

Treasury boss Steven Kennedy told the coronavirus inquiry he takes “full responsibility” for the bungle.

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