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Investing.com -- U.S. Commerce Secretary Howard Lutnick said Tuesday that the Trump administration would consider taking government stakes in companies that need assistance, criticizing previous approaches to corporate support.
Speaking on CNBC, Lutnick specifically mentioned Intel, noting that previous grants given to the chipmaker "asked for nothing" in return. "We agreed we’ve got to make it fair for us," he said regarding Intel.
The Commerce Secretary criticized the implementation of the CHIPS Act, describing it as "mishandled" and a "corporate giveaway."
Lutnick pointed to international precedents for government intervention, noting that "the UK government just nationalized British Steel" without facing penalties. He added that Japan and European countries subsidize their automotive industries, arguing that "America needs to make sure we are also in the game" since "most countries subsidize important industries."
On defense spending, Lutnick noted there’s "monstrous discussion about defense" and mentioned that Lockheed Martin derives most of its revenue from the U.S. government. He clarified that the U.S. currently has "no sovereign wealth fund."
Regarding monetary policy, Lutnick stated that "we all agree interest rates should be lower" and claimed "the market has learned that we’re doing excellent job."
The Commerce Secretary also raised questions about Federal Reserve Governor Lisa Cook, asking "if Fed’s Cook committed fraud," and described mortgage fraud as "black and white."