WASHINGTON, DC — Today Treasury Secretary Steven Mnuchin announced that he will phase out three Federal Reserve emergency lending programs at the end of the year, in violation of the Fed’s Demand that “the full array of emergency facilities established during the coronavirus pandemic continue to fulfill their vital role in backing up our still strained and vulnerable economy.” After Mnuchin’s announcement Andre VinelliVice President for Economic Policy at the Center for American Progress, made the following statement:
We are still in the middle of the worst economic crisis in almost a century. As COVID-19 cases are expected to rise in the coming months, millions of Americans are out of work, scores of businesses are likely to close permanently, and state and local governments face fiscal crises that threaten their ability to continue responding to the Crisis. Emergency credit programs, such as Secretary Mnuchin is phasing out, are critical to supporting businesses, state and local governments, and the broader economy over the next few precarious months before a COVID-19 vaccine becomes widely available.
Mnuchin’s decision is reckless. Rather than halting aid to still-struggling sectors of the economy, Mnuchin should work with Congress to pass a much-needed relief package, as the US House of Representatives did months ago. Millions of livelihoods and the nation’s long-term economic future depend on it.
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