Saturday, December 19, 2020

So much for backstopping shadow banks

Senators reach deal on Fed powers, setting stage for coronavirus relief passage
The compromise will sweep out the $429 billion in unspent CARES Act funding for the Federal Reserve’s credit lending facilities and repurpose it as an offset for a new $900 billion coronavirus relief bill, GOP sources said.

The deal will close four Federal Reserve credit lending facilities created by the CARES Act and will prevent the Fed from standing up replica facilities in the future without congressional approval.

We got ourselves a deal. Newsom gets some liquidity back from covid re-imbursement.  The bulk is going to individuals. We will not know the solution until we get a few days of earmark swapping.

No comments: