How cruel! Trump Administration Stops Fed Anxiety Aid

 US Treasury businessman Steven Mnuchin issued a letter on Thursday saying he would not continue the worry loan program to the Federal Reserve (Fed) which duly expires later this year and returns any unspent funds.

This action is seen as putting pressure on the Fed to bolster the economic recovery amid the threat of an early resurgence of the coronavirus pandemic in the country to the financial system.

Following on to that, the Fed expressed disagreement with the decision, saying the central bank would prefer that the perceived ease of anxiety continues to play an important role as a "backstop" to a still-stressed and weak economy.

The anxiety program, which expires on December 31, has issued multi-million dollar loans to ensure the US economy continues to survive. He also helped restore stability to the financial system after being shocked by this year's coronavirus wave.

The Fed and the Treasury have joint responsibility to design and deliver programs, with some of them created by Congressional orders in a massive aid package known as the CARES Act, signed by President Donald Trump on March.

In addition to Mnuchin's decision, there is a recent report from sources familiar with the matter telling that the Fed still has a large lending power in the event of a shock to the financial system.

In addition, Mnuchin or any of the new treasury undertakers of Joe Biden's administration may decide to restart the anxiety-lending program under the new Fed agreement.