America would hit 3 percent growth without Boeing problems: Mnuchin
'This would have been 3 percent otherwise'
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Expectations for numbers reflecting the 2020 U.S. economy will have to be tempered because of Boeing's struggle to get the 737 Max back in the skies, Treasury Secretary Steven Mnuchin told Maria Bartiromo on "Sunday Morning Futures."
"For this year, we've been looking at 2.5 to 3%, as I said, it may be closer to 2.5 because of the adjustment of the Boeing numbers," Mnuchin said. "But this would have been 3% otherwise. There's no question that USMCA and the China deal are going to add significantly to growth."
BOEING'S FORMER CEO DENIED MILLIONS IN SEVERANCE BUT KEEPING MILLIONS AS WELL
Boeing's 737 MAX, the best-selling aircraft in the company's history, has been grounded since March after two crashes in less than six months that killed 346 people.
Treasury Secretary Steven Mnuchin had a warning about Boeing's effect on numbers reflecting U.S. economic growth.
"Now let me just say that there's no question that the Boeing situation is going to slow down the GDP numbers," Mnuchin told Bartiromo. "Boeing is one of the largest exporters, and with the 737 Max, I think that could impact GDP as much as 50 basis points this year. But we look forward to very healthy growth in 2020."
The 737 Max situation could cut first quarter 2020 GDP growth by approximately half a percentage point, according to economists' estimates cited by Reuters in December.
The fallout for Boeing has been immense. Executives have been grilled over the deadly crashes by members of Congress, and Boeing's former CEO Dennis Muilenburg resigned in late December.