The maneuver reversed the fate of the congressional relief package, as cases of coronavirus increased, unemployment insurance claims increased and weak statistics indicated that American homes and businesses were struggling with near-term economic pain. Even when the vaccine hopes for a future boom. Without the new government support, millions of people could suffer a vague winter outbreak with little help at their disposal.
The language that Mr. Tommy and other Republicans are pushing for will release funds earmarked to support Fed credit for small and medium-sized businesses, state and local governments, and large corporations. More worrying for Democrats, it would also ban the Fed and the Treasury Department from relaunching a new version of the critical loan program implemented this year.
Mr Biden’s decision to step down amid continuing economic weakness has angered Democrats, who have blamed Secretary of the Treasury Steven Munchin for his decision to shut down Fed programs last month. End of the year.
Mr Toomey denied that he was trying to harm the incoming Biden administration or cite the economy. But he acknowledged that his move was aimed at deterring Democrats from taking advantage of the Fed’s emergency loan programs so that borrowers could get cheaper credit. Mr Tommy argued that the programs were meant to prevent markets from collapsing, not to help municipalities or disadvantaged oil and gas companies in relation to green energy.
“It would be a terrible idea to morph these programs into something else,” Mr. Tumey told reporters. Under some Democrat plans, he warned, “the Fed will not be a last resort lender, it will be a first resort lender.”
Mr Tumey, who said the new language was “the most important thing” to him, said he was widely supported by Senate Republicans and Mr Munuchi. A senior administration official confirmed that the Treasury Secretary had endorsed him.
Democrats condemned the move, which would also give the Biden administration fewer tools to fight the economic turmoil.
Bharat Ramamurthy, a Democratic member of the Congressional Oversight Commission, which oversees the Fed’s programs, said this is a significant last-minute request from Senate Republicans that goes far beyond anything they have sought in the past. He said the ability of the Biden administration and the Fed to provide credit and support markets would be radically limited next year.
Contributed by the report Zolan Kanno-Youngs And Washington Washington Nicholas Fandos From New York.
