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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