Mnuchin steals the lifeboats!


Nicholas Kamm/AFP

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.

4 thoughts on “Mnuchin steals the lifeboats!

  1. Scorched earth says:

    “Treasury Secretary Steven Mnuchin will put $455 billion in unspent Cares Act funding into an account that his presumed successor, former Federal Reserve Chair Janet Yellen, will soon need authorization from Congress to use.
    The money will be placed in the agency’s General Fund, a Treasury Department spokesperson said Tuesday. Most of it had gone to support Federal Reserve emergency-lending facilities, and Mnuchin’s clawback would make it impossible for Yellen as Treasury secretary to restore for that purpose without lawmakers’ blessing.” https://www.msn.com/en-us/money/markets/mnuchin-plans-to-put-455-billion-beyond-yellen-s-easy-reach/ar-BB1bk1Hk?li=BBnbfcN

  2. Used up says:

    “President Trump on Saturday continued to demand changes to the $900 billion stimulus deal that Democrats and Republicans approved on Dec. 21, raising the odds that the government could shut down on Tuesday and the economy could suffer a devastating shock in the final days of his presidency.
    “I simply want to get our great people $2000, rather than the measly $600 that is now in the bill,” Trump wrote in a tweet.
    His demand for $2,000 stimulus checks is a direct rejection of the $600 checks that Treasury Secretary Steven Mnuchin had personally proposed and negotiated with Democrats and Republicans. Now, Trump’s rejection of the deal has confounded many leaders on Capitol Hill because they had thought Mnuchin negotiated the package on behalf of the president. The treasury chief’s standing with many lawmakers is now in tatters just days before a full-blown crisis is set to occur.
    Mnuchin had described the bipartisan deal as “fabulous” one day before Trump called it a “disgrace.”
    “Loyalty and assistance to President Trump generally gets rewarded with humiliation. This is how it ends for a lot of people who work for the guy,” said Brian Riedl, a conservative policy expert at the Manhattan Institute, a right-leaning think tank. “Secretary Mnuchin has been completely embarrassed.” https://www.washingtonpost.com/us-policy/2020/12/26/trump-mnuchin-stimulus/

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