U.S. Treasury Secretary Steven Mnuchin’s decision to allow key pandemic relief programs to expire is like stripping lifeboats from the Titanic, according to Carl Weinberg, chief economist at High Frequency Economics.
Mnuchin announced Thursday that he will not extend the Federal Reserve’s emergency lending programs that used Congress’ CARES Act funds beyond Dec. 31. The move is expected to drastically reduce the central bank’s ability to shore up the financial system.
“I don’t think there is a good economic or public health or social reason to explain why they want to cut these programs at this particular time, so it has kind of got to be politics, doesn’t it?” Weinberg said.
Regardless of performance at the gig he was appointed to by El Trumpo, Mnuchin is, as we say, a political animal. In this instance, a pet conservative owned by the very former president.