WORLD NEWS – US – Mnuchin asks the Fed to return $ 455 billion in unspent emergency money for COVID-19

Treasury Secretary Steven Mnuchinsteven Turner Mnuchin Republican senators urge Trump to designate West Bank goods as « Made in Israel » for non-stop coronavirus relief. Leadership talks Trump punishes Iranian officials and organizations for human rights violations on the anniversary of the deadly crackdown on protests More on Thursday demanded the Federal Reserve to close five emergency relief facilities from COVID-19 and return $ 455 billion in unused money, a move opposed by a bank chief Federal Reserve Jerome Powell.

“I demand that the Federal Reserve return unused money to the Treasury. This would allow Congress to reallocate $ 455 billion, consisting of $ 429 billion in excess Treasury funds to Federal Reserve facilities and $ 26 billion in unused direct Treasury loan funds, « Mnuchin wrote in a letter..

In March, Congress approved $ 2. $ 2 trillion in emergency relief in CARES Act, which included $ 500 billion to create a variety of emergency lending facilities through the Federal Reserve and collateral loans. Rapid measures helped calm nervous markets, but in the end, only a small fraction of the money was used – $ 25 billion -.

“The Federal Reserve prefers that the full suite of emergency facilities created during the coronavirus pandemic continue to play an important role as a lever for our still tense and weak economy,” the central bank said in an extraordinary direct response to the message. The Fed generally avoids thinking about the specifics of policy.

On Tuesday, Powell said « I don’t think the time has come yet, or very soon » to shut down programs, adding that the Fed was committed to « using all of our tools to support the recovery as long as it takes for it to work well and truly. ».

He cited weak spending data and slowing job growth, as well as a new increase in coronavirus cases, as evidence that additional support might be necessary..

While Mnuchin asked the Fed to extend four of the facilities for another 90 days – the Commercial Paper Funding Facility, the Primary Trader Credit Facility, the Money Market Liquidity Facility, and the Paycheck Protection Liquidity Facility – he said there should be another five shut down.

These facilities included the corporate credit facility in the primary market, the corporate credit facility in the secondary market, the municipal liquidity facility, the main street loan program, and the asset-backed guarantee loan facility for term.. .

“In the event that it will likely become necessary in the future to re-establish any of these facilities, the Federal Reserve can seek approval from the Treasury Secretary,” Mnuchin said, adding that the Treasury could use the pre-existing exchange stabilization fund in this situation..

O. Pat Tommy Patrick (Pat) Joseph Tome, Court of Appeals, rules over the collection of mass phone data for the National Security Agency, Dunford has withdrawn from considering chairing the Coronavirus Oversight Committee, Republican senators are pressing for a swift and partial reopening of the economy More (R-Pa. ), Who has been a major player in writing the financial portions of the CARES Act, praised Mnuchin’s decision.

“The intention of Congress was clear: These facilities were temporary, to provide liquidity, and to cease operations by the end of 2020.. With the restoration of liquidity, it must end, as Congress wanted and the law requires, by December 31, 2020,.

Bharat Ramamurti, a member of the Congressional Oversight Committee that oversees the CARES ACt and former advisor to Sen. Elizabeth Warren Elizabeth Warren on the Money: 12 Million to lose federal unemployment benefits after Christmas Warren urges Biden to cancel student debt | Stocks close with losses as states and cities reimpose COVID-19 restrictions Warren urges Biden to cancel student debt: «  The biggest single incentive we can add.  » Democrats vent Schumer on the failure of the Senate majority over (D-Mass). ), He said the Fed had some leverage to hold on to $ 195 billion that the Treasury Department had already committed to, even if the programs shut down at the end of the year..

Mnuchin was accused of keeping the facilities more important to open Wall Street, while closing those destined for the municipalities.

“It really gives to the game that Secretary Mnuchin wants to extend programs designed to protect Wall Street while ending programs aimed at helping small businesses and state and local governments,” he tweeted.

Mnuchin’s request comes at a time when exchange rates in the House and Senate are increasing the size of a new relief bill, Republicans say it should be in the $ 500 billion range and Democrats say it should exceed $ 2 trillion.

Mnuchin said the move would return $ 455 billion, the Treasury Secretary said Congress might suit it for other uses..

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US Treasury Department, Federal Reserve System, Stephen Mnuchin, Joe Biden, Jerome Powell, Democratic Party