Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin will testify in Congress next week after the Treasury Department asked the central bank to return the unused funds from the COVID-19 relief package
WASHINGTON (Pakistan Point News / Sputnik - 23rd November, 2020) Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin will testify in Congress next week after the Treasury Department asked the central bank to return the unused funds from the COVID-19 relief package.
The Committee on Banking, Housing and Urban Affairs said in a statement that it will meet in open session on December 1 to conduct a hearing dubbed "the Quarterly Cares Act report to Congress."�
"The witnesses will be: the honorable Steven T. Mnuchin, Secretary, Department of the Treasury; and the honorable Jerome H. Powell, chairman, board of governors of the Federal Reserve system," the statement said.
Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act in March in an attempt to overcome the 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.
On Thursday, Mnuchin sent a letter to the Federal Reserve asking the central bank to down five emergency COVID-19 relief facilities and return the unused $455 billion in relief funds. Powell has opposed the Treasury Department's demand to return the unused funds.
Mnuchin said his decision was based on Congress' original intent for unused funds to be returned issuing entity, which is the Treasury Department.
Mnuchin also said that in the unlikely event it becomes necessary for the Federal Reserve to recover the funds, the central bank may make such a request from the Treasury Secretary.
Federal Reserve officials said they have been surprised by Mnuchin's decision given that the central bank is still utilizing lending programs to provide COVID-19 relief aid.
