• D. Brit

Mnuchin Will Not Extend Some Fed Emergency Loan Programs


What Happened:

  • On Thursday, Treasury Secretary Steve Mnuchin said he will not extend several of the emergency loan programs currently set up with the Federal Reserve.

  • According to Mnuchin, the Fed’s corporate credit, municipal lending and Main Street Lending programs will not be renewed when they expire on Dec. 31.

  • The central bank has criticized the decision, saying, it "would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy."

  • Fed Chairman Jerome Powell has also publicly rebuked the decision saying that he hoped the loan programs would continue and that "When the right time comes, and I don’t think that time is yet, or very soon, we’ll put those tools away."

  • Mnuchin is also requesting that the Fed return the unused funds appropriated for the operation of the programs saying this will allow congress to re-appropriate the $455 billion into other Covid-19 programs.


Photo Source: congress.gov


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