Trump wades into USPS cashflow crisis

US President Donald Trump has waded into the cashflow crisis announced by the US Postal Service (USPS) by saying it should raise its package and shipping rates by four times before seeking more aid from Congress.

Though the President has said similar things before, this time he added punch to the statement by saying he would not approve a $10bn loan to the USPS under the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act unless the agency first agrees to take his advice.

“If they don’t raise the price, I’m not signing anything, so they’ll raise the price so that they become maybe even profitable, but so they lose much less money. And if they don’t do it, I’m not signing anything and I’m not authorising you to do anything,” Trump said in a White House press conference alongside Treasury Secretary Steven Mnuchin.

Supporting the President, Mnuchin said that the Treasury team is ‘actively working’ with USPS officials in putting the loan together but acknowledged that there will be some firms conditions attached to the loan.

“We are going to put certain criteria for a postal reform program as part of the loan, and the board is recruiting a new postmaster general and doing postal reform,” he said.