Mnuchin Asks Federal Reserve To Return Unused $455Bln Set For COVID-19 Emergency Programs

MOSCOW (Pakistan Point News / Sputnik - 20th November, 2020) US Treasury Secretary Steven Mnuchin has sent a letter to the Federal Reserve, asking the body to return unused $455 billion allocated for emergency lending programs under the Coronavirus Aid, Relief and Economic Security (CARES) Act that are set to expire at the end of the year.

"With respect to the facilities that used CARES Act funding ... I was personally involved in drafting the relevant part of the legislation and believe the Congressional intent as outlined in Section 4029 was to have the authority to originate new loans or purchase new assets ... expire on December 31, 2020. As such, I am requesting that the Federal Reserve return the unused funds to the Treasury. This will allow Congress to re-appropriate $455 billion, consisting of $429 billion in excess Treasury funds for the Federal Reserve facilities and $26 billion in unused Treasury direct loan funds," Mnuchin said on Thursday.

According to the secretary, in the unlikely event if, in the future, it becomes necessary to recover these funds, the Federal Reserve may request approval from the Secretary of the Treasury.

"I am deeply honored to have worked on executing these programs and hope that because of our collective actions, Congress will show similar trust in Federal Reserve Chairs and Treasury Secretaries in the future," Mnuchin added.

The CARES Act was passed back in March in a bid to overcome economic consequences of the coronavirus pandemic. The measure provided about $3 trillion in grants and loans to US businesses and paycheck protection to qualifying citizens and permanent residents.