Washington, D.C. — Today, Treasury Secretary Steven Mnuchin announced that he would allow three Federal Reserve emergency lending programs to expire at the end of the year, going against the Fed’s desire that “the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy.” Following Mnuchin’s announcement, Andres Vinelli, vice president of Economic Policy at the Center for American Progress, issued the following statement:
We are still in the midst of the worst economic crisis in nearly a century. As COVID-19 cases are expected to surge in the coming months, millions of Americans are out of work, scores of businesses are likely to permanently close, and state and local governments are facing budget crises that are threatening their ability to continue to respond to the crisis. Emergency lending programs, such as the ones Secretary Mnuchin is allowing to expire, are vital to supporting the businesses, state and local governments, and the larger economy during the next few precarious months before a COVID-19 vaccine is widely available.
Mnuchin’s decision is reckless. Rather than cut off aid to still-struggling sectors of the economy, Mnuchin should work with Congress to pass a desperately needed aid package, as the U.S. House of Representatives did months ago. Millions of livelihoods and the nation’s long-term economic future depend upon it.
For more information or to speak with an expert, contact Julia Cusick at gro.ssergorpnacirema@kcisucj.