{"id":116459,"date":"2020-11-20T16:56:45","date_gmt":"2020-11-20T13:56:45","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/federal-reserve-fights-treasury-move-to-end-covid-19-programs\/"},"modified":"2020-11-20T16:56:45","modified_gmt":"2020-11-20T13:56:45","slug":"federal-reserve-fights-treasury-move-to-end-covid-19-programs","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/federal-reserve-fights-treasury-move-to-end-covid-19-programs\/","title":{"rendered":"#Federal Reserve fights Treasury move to end COVID-19 programs"},"content":{"rendered":"

“#Federal Reserve fights Treasury move to end COVID-19 programs<\/strong>”
\n<\/p>\n

\n The Trump administration plans to pull the plug on five loan programs that supported the economy during the coronavirus crisis \u2014 prompting a rare objection from the Federal Reserve.<\/p>\n

Treasury Secretary Steven Mnuchin said his department won\u2019t renew the emergency programs \u2014 which shored up the corporate bond market, municipal governments and struggling Main Street businesses \u2014 after they expire on Dec. 31.<\/p>\n

Mnuchin also asked the Fed on Thursday to return all unused funding for the programs that came from the CARES Act stimulus bill, which he said would allow Congress to \u201cre-app<\/a>ropriate\u201d $455 billion for other coronavirus aid efforts.<\/p>\n

But the usually staid central bank issued a blunt statement opposing the move, saying it \u201cwould 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.\u201d<\/p>\n

Fed Chairman Jerome Powell and other bank honchos have argued in recent months that the economy needs more government support\u00a0to fuel the fragile recovery from the massive economic downturn the pandemic has caused.<\/p>\n

Powell said Tuesday that it was not yet time to wind down the emergency lending programs amid a nationwide surge in coronavirus infections, adding that the economy had \u201ca long way to go\u201d before it\u2019s fully healed.<\/p>\n

But Mnuchin argued that the facilities \u201chave clearly achieved their objective\u201d of reducing pressure on banks and improving access to credit. He said the Fed could seek approval to restart the programs if they\u2019re needed again and expressed support for extending other programs that weren\u2019t funded by the CARES Act.<\/p>\n

The secretary also noted that \u201cuse of these facilities has been limited\u201d \u2014 the municipal lending program has made just one loan and the Main Street lending initiative has loaned just about $4 billion to roughly 400 companies.<\/p>\n

Sen. Pat Toomey, a Pennsylvania Republican who sits on the Senate Finance Committee, backed Mnuchin\u2019s move, saying the programs were only meant as a short-term backstop.<\/p>\n

\u201cCongress\u2019 intent was clear: These facilities were to be temporary, to provide liquidity and to cease operations by the end of 2020,\u201d Toomey said in a statement.<\/p>\n

But Rep. James Clyburn (D-South Carolina) said there was \u201cno justification\u201d for Mnuchin\u2019s decision to cut off the programs on his way out of the White House.<\/p>\n

\u201cThese programs are part of a comprehensive set of tools Congress gave the Federal Reserve to combat the pandemic-related economic crisis, and ending them in the midst of the crisis would undermine the economic recovery,\u201d said Clyburn, who chairs the House\u2019s Select Subcommittee on the Coronavirus Crisis.<\/p>\n

With Post wires<\/em>\n <\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Federal Reserve fights Treasury move to end COVID-19 programs” The Trump administration plans to pull the plug on five loan programs that supported the economy during the coronavirus crisis \u2014 prompting a rare objection from the Federal Reserve. Treasury Secretary Steven Mnuchin said his department won\u2019t renew the emergency programs \u2014 which shored up the…<\/p>\n","protected":false},"author":1,"featured_media":116460,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2020\/11\/Mnuchin-loans-01.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[80778,1545,5069,78738,74672],"class_list":["post-116459","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-11-20-20","tag-coronavirus","tag-economy","tag-jerome-powell","tag-steven-mnuchin"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/116459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=116459"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/116459\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/116460"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=116459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=116459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=116459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}