Secy Mnuchin asks Fed to return $455B of COVID relief funds
UPDATED 6:15 PM PT – Thursday, November 19, 2020
Treasury Secretary Steven Mnuchin requested that the Federal Reserve return unused coronavirus stimulus funds.
In a letter to Fed Chairman Jay Powell on Thursday, Mnuchin said the central bank held some $455 billion from the COVID-relief package passed back in March. The Treasury Secretary asked Powell to return that money so Congress can spend it on additional relief measures.
Please see my letter to Chair Powell regarding the status of the 13(3) facilities: https://t.co/mPzoycEjHh
— Steven Mnuchin (@stevenmnuchin1) November 19, 2020
“The liquidity and capital position of U.S. banks ensure that they can fulfill the financing requirements of their customers,” Mnuchin wrote in the letter. “In the most recent survey by the National Federation of Independent Business, only 2% of small and medium-size firms reported that all their borrowing needs were not satisfied.”
The Fed cut interest rates and expanded the balance sheet earlier this year to help the U.S. economy. Mnuchin added he will be able to help U.S. businesses without a new COVID-relief bill if the Fed returns its relief funds.
— Federal Reserve (@federalreserve) November 19, 2020