Mnuchin Defends Shutting Down Fed Emergency Loan Programs – By Martin Crutsinger (Huff Post) / Dec 1 2020
The Treasury Secretary argued that the funds should instead be used to help small businesses and unemployed workers.
WASHINGTON (AP) — Treasury Secretary Steven Mnuchin is defending his decision to close down a number of emergency Federal Reserve loan programs at a time when coronavirus cases are surging.
Democrats were unconvinced, however, saying that Mnuchin’s actions are politically motivated and take away tools that the Biden administration could use to support the economy.
Mnuchin argued that the programs he decided not to extend into next year were being lightly utilized and the more than $400 billion allocated for those Fed loan programs could be better used elsewhere if Congress moved the funds into relief programs for small businesses and unemployed workers.
Democrats aired their criticism Tuesday as Mnuchin and Federal Reserve Chairman Jerome Powell testified at a Senate Banking Committee oversight hearing about the $2 trillion CARES Act approved by Congress last March.
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