Treasury Secretary Steven Munuchi refused to extend some of the emergency loan programs jointly established with the Federal Reserve, which is due to expire on December 31.
The Fed’s corporate credit, municipal financing and main street financing programs will not be renewed, Mr. Muchin said Thursday.
The central bank expressed disappointment in its decision. The Federal Reserve will prioritize that the full suite of emergency facilities installed during the coronavirus epidemic will play their important role as a backstop for our still tense and weak economy, the Fed said in a statement.
Fed Chairman Jerome Powellhad indicated in a comment on Tuesday that he did not think it would be appropriate to allow the termination of programs.
“The Fed is strongly committed to using all of our tools to support the economy until the work is done well and correctly,” Mr. Powell said. “When the right time comes, and I don’t think it’s time yet or very soon, we’ll put those tools in place.”
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