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Mnuchin refuses to expand several Fed emergency lending programs

Finance Minister Stephen Mnuchin has refused to extend several emergency loan programs created jointly with the Federal Reserve, which are due to expire on December 31st.

The Fed’s corporate credit, municipal lending and Main Street Lending programs will not be renewed, Mr Mnuchin said on Thursday.

The central bank signaled disappointment with his decision. “The Federal Reserve would prefer the full range of emergency facilities created during the coronavirus pandemic to continue to play an important role in supporting our still tense and vulnerable economy,” the Fed said in a statement.

Fed Chairman Jerome Powellhad said in a statement Tuesday that he did not think it would be appropriate to let the programs expire.

“The Federal Reserve will be strongly committed to using all of our instruments to support the economy for as long as it takes until the work is well and truly done,”

; Mr Powell said. “When the right time comes and I don’t think the time is still or very soon, we will put away these tools,” he said.

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