The Federal Reserve and the Treasury Department are no longer on the same page.
Treasury Secretary Steven Mnuchin said the pandemic lending programs at the Federal Reserve would expire on Dec. 31.
In a letter to Fed Chairman Jerome Powell, Mnuchin asked for the return of $455 billion allocated to the Treasury under the CARES Act last spring, much of it set aside for Fed programs meant to buoy the economy. Mnuchin said the programs had served their purpose and the funds instead should be available for Congress to reallocate.
The Fed voiced its displeasure with the decision, writing in an emailed statement that it “would prefer 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.”