Treasury Secretary Steven Mnuchin said on Friday that the Treasury has up to $800 billion for economic deployment through the Exchange Stabilization Fund and elsewhere, according to CNBC. Mnuchin downplayed Treasury’s decision to curtail several Federal Reserve programs saying there is plenty of money to provide funding if needed.
- Mnuchin’s statement comes after, on Thursday, Treasury and Fed conflicted, with the former seeking not to extend the lending programs instituted during the early days of the pandemic.
- Funding of the pandemic programs is set to expire at the end of the year, and the Fed called for extending them but will now have to return the unused capital committed to the facilities.
- Mnuchin has suggested that the Treasury does not need to buy more corporate bonds since the municipal market is working and people can borrow lots of money.
- The Treasury chief insisted that he has a positive relationship with the Fed Chairman Jerome Powell and that his decision was consistent with the law
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