Ending emergency Covid lending programs is ‘foolish and reckless’, Senior House Democrat tells Mnuchin
House Financial Services Committee Chairwoman Maxine Waters called Treasury Secretary Steven Mnuchin’s decision to end several Federal Reserve lending programs amid the pandemic “foolish and reckless.”
But the Trump administration official contended he was just following the intent of a Covid-19 relief bill that the California Democrat and hundreds of other lawmakers passed earlier this year.
“The law does not say that,” she said of what she called his “novel interpretation” of the law.
“What you’re doing is contrary to what’s lawful, and puts our entire economy in jeopardy,” Ms Waters said.
But the Treasury secretary shot back: “I believe I am following the law” as he read aloud the section of the law that is in question.
“The transfer of the funds is not up to me,” Mr Mnuchin said.
Federal Reserve Chairman Jerome Powell demurred when Ms Waters asked his view of the situation, saying Congress handed the treasury secretary “sole authority” over the lending funds. “And we respect that,” he said of the central bank.
Democrats want the monies to be used to help small businesses, which have been reeling during the pandemic due to restrictions and mitigation efforts.
