Economics
Treasury Seeks Unused Funds From Fed in Clash With Central Bank
- Fed prefers programs ‘continue to serve their important role’
- Treasury wants Congress to re-appropriate $455 billion
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The Trump administration moved Thursday to end several emergency pandemic lending programs at the Federal Reserve, triggering a rare public rift when the central bank objected to the Treasury Department’s instruction.
Treasury Secretary Steven Mnuchin, in a letter to Fed Chair Jerome Powell, sought a 90-day extension for four of the central bank’s emergency lending programs, while requesting five other programs expire on schedule on Dec. 31 and the Fed return unused funds, allowing Congress to re-appropriate $455 billion and spend the money elsewhere.