Federal Reserve fight imperils relief talks | TheHill

But last month, Treasury Secretary Steven MnuchinSteven MnuchinFight over Federal Reserve powers holding up year-end deal Senators request IRS briefing on SolarWinds hack Senators urge IRS to provide late filing and payment relief amid pandemic MORE said he would shutter five of the funds — the Primary Market Corporate Credit Facility, Secondary Market Corporate Credit Facility, Municipal Liquidity Facility, Main Street Lending Program and the Term Asset-Backed Security Loan Facility — and request that the Fed return the $455 billion that remained to the Treasury.In response to the letter, the Fed put out an unusually direct statement on its policy preferences, saying it “would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy.”On Friday afternoon, Democrats began a full court press against the policy, saying that it would hamstring the incoming Biden administration, and even tie the Fed’s hands in future crises.“If implemented, this unprecedented change to the law would block the Federal Reserve from ever creating lending facilities that help small businesses and state and local governments, taking away one of the important tools to fight this or any future economic crisis,” House Financial Services Committee Chairwoman Maxine WatersMaxine Moore WatersMegan Thee Stallion shares letter from Maxine Waters thanking her for bringing attention to 'plight of Black women' Women make record-breaking gains across state legislatures Sweeping financial crimes bill to hitch a ride on defense measure MORE (D-Calif.) and Ways and Means Committee Chairman Richard NealRichard Edmund NealCommittees reach bipartisan deal to protect patients from surprise medical bills On The Money: Momentum stalls for COVID-19 relief bill | Congress barrels toward 'COVID cliff' | House passes stopgap bill to avoid government shutdown Bipartisan fix for 'surprise' medical bills hits roadblock MORE (D-Mass.) said in a joint statement.Biden’s team also weighed in on the matter, arguing the facilities are an important backstop in the event that the economy hits rough waters again.“The package should not include unnecessary provisions that would hamper the Treasury Department and the Federal Reserve’s ability to fight economic crises,” said Brian DeeseBrian DeeseOVERNIGHT ENERGY: Countries roll out 2030 Paris Accord goals amid US absence | Biden eyes new EPA picks as Nichols reportedly falls from favor | Kerry faces big job on climate, US credibility Brian Deese v.