Press "Enter" to skip to content

Treasury Secretary Mnuchin wants to redirect $580 billion of unspent stimulus money to prop up small businesses and extend unemployment benefits

• None Treasury Secretary Steven Mnuchin wants to funnel unspent stimulus money into the American economy, he said on Thursday evening.
• None “I hope that Congress will seriously consider reallocating $580 billion of funds that have already been appropriated that wouldn’t cost taxpayers an additional penny,” Mnuchin told Bloomberg.
• None Mnuchin’s comments come after he announced he was not extending many of the Fed’s emergency lending programs past the end of the year. It sparked a rare rebuke from the central bank.

Treasury Secretary Steven Mnuchin wants to redirect unspent stimulus money into the American economy, he said on Thursday evening.

“I hope that Congress will seriously consider reallocating $580 billion of funds that have already been appropriated that wouldn’t cost taxpayers an additional penny,” he told Bloomberg. The pool of funds includes money appropriated by Congress through the CARES Act in March.

Mnuchin suggested the unspent money could be used to extend unemployment benefits and assist hard-hit small businesses in travel, entertainment, and restaurants. The move would require congressional approval.

He doubled down in a CNBC interview on Friday morning. “We don’t need this money to buy corporate bonds. We need this money to go help small businesses that are still closed or hurt, no fault of their own,” he said. “Or people who are gonna be on unemployment that’s running out.”

The remarks come after Mnuchin announced he was not extending most of the Federal Reserve’s emergency lending programs past the end of the year, including those supporting markets for corporate bonds and another providing loans to medium-sized businesses and state governments. The treasury and central bank jointly operate them.

Mnuchin also requested the Fed to return the money in the letter. It prompted a very rare rebuke from the central bank, which appeared to be caught off-guard. Read from source….