Treasury Secretary Steve Mnuchin is actively trying to flat out sabotage the incoming Biden administration’s response to the Covid-19 pandemic on his way out the door. Mnuchin is trying to move $455 billion in unspent coronavirus relief funds into an account that requires congressional authorization to access.
Don’t ever cast Treasury Secretary Mnuchin as a patriot. Only the scumiest Trumpster would intentionally try to sabotage the next administration’s ability to deal with the financial nightmare that will likely unfold as the pandemic once again is out of control and threatens to push the U.S. economy to the brink of the worst economic crises since the great depression.
Bloomberg reports that almost half a trillion dollars, which both the Senate and House have allocated to the Federal Reserve in March for emergency lending programs to assist local governments and struggling businesses, will be put in the Treasury Department’s General Fund. These funds will go unused for their intended purpose. As a result of moves, Mnuchin is widely condemned because they will cut off the relief programs at the end of the year. Sen. Ron Wyden (D-OR) was quoted today as saying…
“As the economy backslides amid skyrocketing Covid-19 cases, Secretary Mnuchin is engaged in economic sabotage, and trying to tie the Biden administration’s hands.”
Mnuchin requested that the currently divided Congress reallocate the funds, and the Fed has agreed to cooperate with the outgoing treasury secretary’s move despite its stated objections to doing so. The decision to go along with Mnuchin could result in President Biden firing Federal Reserve Chairman Jay Powell.
“Mnuchin’ clawback would make it impossible” for Janet Yellen, President-elect Joe Biden’s pick to lead the Treasury Department, to utilize the funds “without lawmakers’ blessing.”
“The move leaves just under $80 billion available in the Treasury’s Exchange Stabilization Fund, a pot of money that can be used with some discretion by the Treasury chief,” Bloomberg noted.
“By contrast, the CARES Act funds had specific uses, and weren’t available for general government spending purposes.”
Mnuchin, a former Goldman Sachs banker, insists he is attempting to ensure the funds are better used. Still, Democratic members of Congress and other observers accuse the treasury secretary of a potentially unlawful ploy to hamstring the Biden administration’s coronavirus response before the president-elect takes office. According to one analyst, Mnuchin’s actions are an “explicit” violation of the CARES Act.
Bharat Ramamurti, a member of the congressional commission established to oversee the use of coronavirus relief money, says…
“This is Treasury’s latest ham-handed effort to undermine the Biden administration. The good news is that it’s illegal and can be reversed next year,”
“For its part, the Fed should not go along with this attempted sabotage and should retain the CARES Act funds it already has.”
Sen. Ron Wyden, the top Democrat on the Senate Finance Committee, denounced as “shameful” Mnuchin’s effort to pull back the congressional relief funds and place them out of the Biden administration’s reach, saying in a statement to Reuters on Tuesday…
“As the economy backslides amid skyrocketing Covid-19 cases, Secretary Mnuchin is engaged in economic sabotage, and trying to tie the Biden administration’s hands,”
Sen. Elizabeth Warren (D-Mass.) tweeted late Tuesday…
“Secretary Mnuchin’s Covid-19 response has been a corrupt and incompetent failure.”
“He needs to stop sabotaging the Biden administration from cleaning up his mess and helping states, cities, and small businesses.”
Did the US Treasury Secretary JUST SABOTAGE or HELP Stimulus