WASHINGTON (AP) – Treasury Secretary Steven Mnuchin denied that he is attempting to limit the choices President-elect Joe Biden will have to promote an economic recovery by ending several emergency loan programs being run by the Federal Reserve.
Mnuchin said his decision was based on the fact that the programs were not being heavily utilized. He said Friday that Congress could make better use of the money by re-allocating it in another direction to support grants to small businesses and extended unemployment assistance.
“We’re not trying to hinder anything,” Mnuchin said in a CNBC interview. “We don’t need this money to buy corporate bonds. We need this money to go help small businesses that are still closed.”
However, critics saw politics at play in Mnuchin’s decision, saying the action would deprive the incoming administration of critical support the Fed might need to prop up the economy as coronavirus infections spike nationwide.
“There can be no doubt, the Trump administration and their congressional toadies are actively trying to tank the U.S economy,” Sen. Sherrod Brown, D-Ohio, said in a prepared statement Friday. “For months, they have refused to take the steps necessary to support workers, small businesses and restaurants. As the result, the only tool at our disposal has been these facilities.”