Treasury Secretary Steven Mnuchin asked Republican senators to keep their faith in the future of the Treasury Department and the Federal Reserve when he leaves his post.
Mnuchin asked lawmakers to trust the agencies’ ability to manage coronavirus relief programs shortly after he faced criticism from President-elect Joe Biden and Democrats for letting federal coronavirus lending programs expire, according to Reuters.
His move limits the ability of Treasury secretary nominee Janet Yellen and the incoming Biden administration to deploy $455 billion in borrowed cash meant for the coronavirus pandemic without congressional approval.
“It is my hope that, because of our responsible use of these authorities in a manner consistent with congressional intent, Congress will show similar trust in Treasury and Federal Reserve leadership in the future,” Mnuchin said, adding, “We have been successful in restoring confidence in financial conditions.”
Last week, Mnuchin said he wouldn’t extend emergency loan programs set up with the Federal Reserve, which was rebuked by the central bank. The lending facilities, though they have been used sparingly so far, are viewed as a backstop for the economy still suffering under the coronavirus pandemic.
The money is part of a $500 billion Treasury Department fund created by the CARES Act, according to Fox Business.
The Treasury Fund set aside $46 billion for loans and loan guarantees for the pandemic-ravaged airline industry. The rest was reserved to support federal lending programs to businesses, states, and localities.
Putting the money in Congress’ general fund leaves only $80 billion available in the Treasury’s Exchange Stabilization Fund.
