Biden Reportedly to Choose Janet Yellen as US Treasury Secretary

Biden Reportedly to Choose Janet Yellen as US Treasury Secretary”

Mnuchin plans to place the money into the agency's General Fund, a Treasury Department spokesperson said Tuesday.

Treasury Secretary Steven Mnuchin is putting $455B of unused CARES Act funding into an account that his presumed successor, former Fed Chair Janet Yellen, will need permission from Congress to use, Bloomberg reports, citing a Department spokesperson.

While Mnuchin, a former Goldman Sachs banker, insisted he is attempting to ensure the funds are put to better use, Democratic members of Congress and other observers immediately accused the treasury secretary of a potentially unlawful ploy to hamstring the Biden administration's coronavirus response before the president-elect takes office.

Biden's transition team called the move, which restricts the new administration's ability to backstop financial markets during a worsening pandemic, "deeply irresponsible".

At the end of 2025, according to the CARES Act passed in March, any remaining relief funds should be transferred to the General Fund and used to reduce the budget deficit.

Yet moving the unspent money will make it virtually impossible for Yellen, if confirmed by the Senate as Treasury secretary, to deploy on her own.

More news: Lack of Canadian vaccine production means others could get inoculations first: PM

A Treasury official said on Friday that funds that cover about $ 25 billion in existing loans from the facility will remain in the Treasury, but that any money reimbursed from the loans can not be used for anything else without congressional approval.

The Cares Act spelled out some limitations for the deployment of unused funds beyond January 1, 2021, without specifically mentioning whether that money could be parked in the Treasury's general account. "For its part, the Fed should not go along with this attempted sabotage and should retain the CARES Act funds it already has".

Mnuchin said that many markets are no longer in danger of seizing up and don't need aid beyond next month, when the programs are scheduled to expire.

Mnuchin requested that the funds be reallocated by the now divided Congress, and the Fed has agreed to cooperate with the outgoing treasury secretary's move.

"For companies that are impacted by Covid - such as travel, entertainment and restaurants - they don't need more debt, they need more PPP money, they need more grants", Mnuchin said in an interview last week. Most of the funds that were set aside were spent on emergency lending facilities through the Federal Reserve.

Like this



26 November 2020
Alex Trebek shares Thanksgiving message in video taped before the host's death
On Monday, the game show said that during the weeks of December 21 and 28, Jeopardy! will air a top 10 of Trebek's past episodes. Humbled and thankful for the opportunity, Jennings tweeted, "There will only ever be one Alex Trebek , but I'm honored".

26 November 2020
Thanksgiving Travel Numbers Are Down, But Millions Still Flying and Driving
Passengers at Tampa International Airport tell ABC Action News, being with family is the driving force behind traveling during a pandemic.

26 November 2020
Samsung rumoured to delay launch of Z Flip successor
Prices start at €179 (~$215) for the 3GB+32GB variant and go up to €199 (~$240) for the 6GB variant with 128GB of storage . The battery capacity is 3900 mAh, while the original smartphone has a 3300 mAh battery .

26 November 2020
Lakers will bring back Markieff Morris on two-year deal
He will likely slot in as the No. 4 big men for the Lakers behind Marc Gasol, Anthony Davis and Montrezl Harrell . Marc Gasol said his brother Pau would "love" to come back to the team and retire as a Laker.

26 November 2020
Lewandowski, Messi, Ronaldo and Salah among FIFA The Best
Voting will continue from November 25 till December 9 prior to the announcement of "Best" Awards , FiFA added. Wiegman was recently appointed new England coach and will replace Phil Neville in September 2021.

26 November 2020
Widespread Amazon outage wipes out a portion of the internet
While the outage didn't completely sever access to a critical AWS service, it seemed to touch more products than previous outages, Singh said. "This is a different kind of issue".

26 November 2020
Redesigned MacBooks in 2021 are expected to be available with Intel chips
In a research note today, shared by MacRumors , Kuo said the new MacBook models will feature an unspecified new design. This may be detracting factor for power users who need more graphical power but can't do so with the M1 Macs.

26 November 2020
United States may begin distributing vaccine in December
Over 8 lakh health staff and frontline workers will get priority in Covid-19 vaccination in Uttar Pradesh. Drug firm Moderna said it will apply soon for its vaccine .

26 November 2020
Russian Pacific Fleet's Vessel Prevents Border Violation by US Navy Destroyer
It said that this means that Moscow actually claimed more territorial waters than it was entitled to. Navy denied the Russian statement , emphasizing that the destroyer was not in Russian waters.

26 November 2020
COVID19: European Union seals deal for Moderna vaccine
Ursula von der Leyen says citizens in the 27-nation bloc could be vaccinated against coronavirus by Christmas. "You name it. The European Union entered in its sixth contract with a pharmaceutical company for another 160 million vaccines.