Treasury Secretary Steve Mnuchin announced that he is ending emergency lending programs before Biden takes office in a bid to start an economic crisis.
The New York Times reported:
Treasury Secretary Steven Mnuchin said he does not plan to extend several key emergency lending programs beyond the end of the year and asked the Federal Reserve to return the money supporting them, a decision that could hinder President-elect Joseph R. Biden Jr.’s ability to use the central bank’s vast powers to cushion the economic fallout from the virus.
Mr. Mnuchin on Thursday said he would not continue Fed programs, including ones that support the markets for corporate bonds and municipal debt and one that extends loans to midsize businesses. The emergency efforts expire at the end of 2020, but investors had expected some or all of them to be kept operational as the virus continues to pose economic risks.
It doesn’t take an economist to understand Mnuchin’s motivation. The Trump administration has admitted that they are trying to start so many fires on multiple fronts before they leave office that the incoming Biden administration will be hobbled by crisis.
There is no reason that these programs should not be continued as the pandemic worsens in the next few months. Mnuchin has seen the recent stock market gains and he is trying to scare the markets while limiting the next administration’s ability to quickly respond to the pandemic.
Mnuchin’s steps are some movie villain level moves. The Treasury Secretary isn’t content with setting fires. He is trying to burn down the fire department so that the blazes rage out of control.
The Trump administration that their only interest has been in causing harm. Governance was never an option.
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