A member of the congressional panel overseeing the Coronavirus Relief Fund accused Treasury Secretary Steven Muchin of trying to “sabotage” the incoming administration of President-elect Joe Biden and of “illegal” cloaking of unwarranted stimulus funds.
A spokesman for the Treasury told Bloomberg News that the Manchin Care Act would return 42 429 billion in funds allocated to the Federal Reserve for emergency financing facilities, and that the Treasury would put another 26 26 billion in direct funds to the agency’s general fund. On tuesday. The move would block the Biden administration from using the funds without congressional approval.
“The move will work [Janet] Yellen – who was elected president by Treasury Secretary Joe Biden – has less than 80 80 billion available in the Treasury Exchange Stabilization Fund, the outlet said. The Treasury Department can keep the money in its exchange stabilization fund until 2026.
Munuchi sent a letter to Federal Reserve Chairman Jerome Powell last week asking for a refund. The Fed agreed to return the funds but publicly objected to the move.
The Fed said in a statement that it prefers that “the full suite of emergency facilities established during the coronavirus epidemic will play their important role as a backstop for our still tense and weak economy.”
Rafael Bostick, president of the Atlanta Federal Reserve Bank, told Bloomberg, “I think given the economy – and there’s still a lot of uncertainty – it’s wise to keep things open,” said Raphael Bostick, president of the Atlanta Federal Reserve Bank. Told Bloomberg.
Some analysts have questioned whether the move was legal. Skand Amarnath, a former analyst at the New York Fed, said Klobeck was straightforward. “Violation of the Cares Act.”
“This is a recent attempt by the Treasury to weaken the Biden administration. The good news is that it is illegal and could be reversed next year,” said Bharat Ramamurthy, a member of the Congressional Oversight Commission overseeing the Kerry Act funding. Said. “For its part, the Fed should not go along with this sabotage attempt and retain the Care Act funds it already has.”
Ernie Tedesi, a former Treasury Department economist, said it was a “dangerous move” to expect a catastrophic winter.
“It’s a more serious threat than any of the other risks we’ve already had in the winter in the U.S.,” he told Business Insider. “We may need that backstop now because cases have been blown by their previous peaks, state and local governments are cutting back, and we’re going to kick millions out of unemployment insurance.”
Munichin, whose move was backed by Senate Majority Leader Mitch McConnell, R-K, told CNBC last week that Congress – which has been stuck in a second round of relief funding since March – should decide how to recreate the fund.
“We don’t need this money to buy corporate bonds. We need this money to help small businesses that are still closed or hurt – or not to blame themselves – or those who are running out of unemployment.” Said.
Senate. Ron Wyden, D.R.R., a top Democrat on the Senate Finance Committee, said Munichin’s efforts are shameful amid a widespread increase in coronavirus infections and an acute need for additional relief funds.
“While the economy is lagging behind in the midst of COVID-19 cases, Secretary Munuchin is engaged in economic sabotage and is trying to shake hands with the Biden administration,” he said in a statement to Reuters.
Sen. Elizabeth Warren, D-Mass., Clubback showed that Manuchin’s epidemic response was “corrupt and incompetent failure.”
“He needs to clean up his mess and stop sabotaging the Biden administration by helping states, cities and small businesses.” He tweeted.
Biden’s team called Manuchin’s move “irresponsible.”
Spokeswoman Kate Beddingfield told Bloomberg that “Biden will work with all government leaders to ensure the major street businesses and state and local governments have the necessary credit assistance and have access to bring this hurricane into the weather.”
