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The United States Secretary of the Treasury is reducing crown aid for businesses and communities. This appears to be Trump’s move to make Joe Biden’s starting position as bad as possible.
Treasury Secretary Steven Mnuchin Wants to Tighten the US Federal Reserve Against His Will: Mnuchin (left) and Fed Chairman Jerome Powell at a US Senate hearing in September.
Photo: Drew Angerer (Reuters)
Steven Mnuchin, Secretary of the Treasury of the United States, surprised the business world with a letter to the Federal Reserve of the United States. In it, he asks them to end five of his nine emergency programs that were created in connection with the Crown crisis at the end of the year and to return the remaining money to the Ministry of Finance (Finance). At first glance, the procedure seems understandable. The programs have already been renewed and officially expire at the end of the year. Furthermore, the funds for these programs were barely used.
In view of the deteriorating economic situation in the United States, all observers, including the Fed itself, have assumed a new extension. Mainly because, in view of the political lockdown that is preventing a new stimulus package in the US Congress, the US Federal Reserve remains the only institution currently supporting the economy. The Fed immediately responded to Mnuchin that it disapproved of his actions and that the programs were still necessary. This open dissent between the two most important economic policy institutions in the United States is as rare as it is remarkable.
