US To Open Virus Financing Floodgates

US President Donald Trump is drawing up a massive emergency spending package while the Federal Reserve opens the financing floodgates to contain growing economic damage from the coronavirus pandemic.

After downplaying the severity of the outbreak for weeks, Trump on Tuesday called for bipartisan support to rush out immediate cash payments to American families.

"We don't want people losing jobs and having no money to live," Trump said at a White House press conference, adding that the package "is a substantial number. We are going big."

With businesses shutting down nationwide due to the spreading pandemic, Americans need "cash now," Treasury Secretary Steven Mnuchin said at the White House.

"We are looking at sending checks to Americans immediately... I mean now, in the next two weeks," he said.

He warned Republican senators on Tuesday morning that the pandemic could drive US unemployment to 20 per cent, a Republican Senate source told CNN.

That would be double the worst point of the financial crisis about a decade ago.

Speaking on Capitol Hill, Mnuchin said the package could surpass US$1 trillion, in addition to US$300 billion in deferred tax payments, making it among the largest federal emergency plans ever and far surpassing assistance during the 2008 global financial meltdown.

The package would include up to US$500 billion in direct payments and up to US$500 billion for small businesses, according to media reports, as well as the full US$50 billion the airline industry has requested.

Mnuchin said that, for airlines, "this is worse than 9/11," with travel virtually ceased. (AFP)