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Saturday, November 21st, 2020

Mnuchin pulls plug on some pandemic lending programs that Fed considers essential

Author:    
Source:     Fox Business
Publication Date:     19 November 2020
 Link: Mnuchin pulls plug on some pandemic lending programs that Fed considers essential
Stephan:   What amazes me about the Trumpers is that they seem incapable of recognizing that the misery the nation is currently experiencing is entirely the result of Trump and his orcs. Yes, Covid-19 was not created by Trump, but the country's reaction to it, from the lack of national planning, the politicization over wearing masks, the economic policies, such as described in this article, the employment crisis, the destruction of our democracy and on and on are all the result of the incompetence, corruption, and criminality of Trump and those who serve him. And yet it has no effect on the worldview of the Trumpers.
U.S. Treasury Secretary Steven Mnuchin. Credit: Gustavo Garello / AP

U.S. Treasury Secretary Steven Mnuchin said on Thursday that key pandemic lending programs at the Federal Reserve would expire on Dec. 31, putting the outgoing Trump administration at odds with the central bank and potentially adding stress to the economy as President-elect Joe Biden organizes his administration.

In a letter to Fed Chair Jerome Powell, Mnuchin said the $455 billion allocated to Treasury under the CARES Act last spring, much of it set aside to support Fed lending to businesses, nonprofits and local governments, should be instead available for Congress to reallocate.

The decision comes as data shows the early fast recovery from a historic plunge in the economy is fading, with more than 10 million who had jobs in January still out of work

“I am requesting that the Federal Reserve return the unused funds to the Treasury,” Mnuchin said in a letter to Powell, declining to extend programs the central bank has said were critical to assuring credit flowed to all parts of the economy […]

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