Trump Administration Cuts Off Federal Reserve’s Emergency Lending Programs
Treasury Secretary Steven Mnuchin says the pandemic relief program is no longer needed. The Federal Reserve opposed the move.
Trump Administration Overrules Jerome Powell And Cuts Off Fed Emergency Lending Programs
US Treasury Secretary Steven Mnuchin has pulled the plug on emergency Federal Reserve lending programs, drawing a rare rebuke from the central bank, which said they are needed to support the economy as the coronavirus pandemic continues to rage. In a letter sent Thursday to Fed Chairman Jerome Powell, Mnuchin asked the central bank to return some $455 billion in unused funding for programs set to expire December 31. He added that Congress would then be able to use the money for other purposes. (McLean, 11/20)
Trump Team To Yank Emergency Economic Support, Triggering Public Fed Dissent
Treasury Secretary Steven Mnuchin on Thursday asked the Federal Reserve to return all unused coronavirus relief funds set aside for its emergency lending programs by the end of the year, taking away a lifeline even as a resurgence in Covid cases threatens to upend the budding economic recovery. Mnuchin said the programs are no longer needed, but the move goes against the Fed’s desire to keep them going, according to a statement from the central bank, in a rare show of public disagreement between the two government agencies. (Guida, 11/19)
In related news about a COVID-relief bill —
Congress Heads Home For Thanksgiving Without Pandemic Relief Deal
Congress will head home for a week-long Thanksgiving holiday recess without passing any sort of compromise coronavirus relief bill as the U.S. death toll passes 250,000 and millions of Americans remain on unemployment. But there is some hope that renewed talks could see some sort of coronavirus relief aid in the coming weeks even with little time remaining on the legislative calendar before the end of the year. (Khan, 11/19)
Crapo Poised For Starring Role In Economic, Health Care Policy
The most powerful committee in Congress hasn’t had a top Republican not named Charles E. Grassley or Orrin G. Hatch in two decades. That’s about to change in January when a Harvard Law School-trained attorney from Idaho Falls is expected to take the Senate Finance gavel — or the ranking member slot in an evenly divided Senate, depending on the Georgia runoffs. Either way, Michael D. Crapo will be at the center of economic and health care policymaking in a pivotal year, as a new administration takes office amid the devastation of COVID-19. (Sword and Clason, 11/20)
Ocasio-Cortez On Controlling COVID-19: 'We Need To Pay People To Stay Home'
Rep. Alexandria Ocasio-Cortez (D-N.Y.) slammed congressional inaction on another coronavirus relief package, saying that “pay[ing] people to stay home” was vital to preventing the spread of the virus.“ To get the virus under control, we need to pay people to stay home,” the New York congresswoman tweeted Thursday. (Budryk, 11/19)
The Washington Post:
Weekly Unemployment Claims Rose Last Week For The First Time In A Month
The number of new unemployment claims rose last week to 742,000, an increase of 31,000 from the previous week, as rising coronavirus cases have spurred a new wave of restrictions and closures begin to weigh on parts of the economy. Since Oct. 10, weekly jobless claims have been slowly trending downward or remaining flat, according to Labor Department data. (Rosenberg, 11/19)