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Trump Seeks Fed's Unused Cash For Direct Checks to Americans

US
  • President Donald Trump is calling on Congress to authorize the release of USD300 billion currently set aside for the Federal Reserve's 13(3) facilities to use as direct relief funds to the American people as fiscal talks drag on with little end in sight.
  • Trump announced during a Friday press conference that money is sitting in an account "we didn't use." His comments indicated that those funds could be used for direct payments similar to the USD1,200 checks that were delivered to most taxpayers in the spring.
  • A senior Trump administration official confirmed to MNI that the money would come from the USD454 billion in CARES Act funds that were directed for the Treasury Department to make direct loans or to guarantee loans made by the Fed in such programs as the Main Street Lending Facility.
  • The Fed has allocated only USD215 billion of the USD454 billion13(3)-related funding authorized by the CARES Act, and only USD114 billion has been transferred from Treasury to the Fed thus far.
  • Asked whether he had ruled out providing the aid through executive order, Trump said there are "some theories" that he has the authority but he says he would prefer to get congressional approval.
  • "It's money we built up. It's money that we haven't spent and would love to give it to the American people as a very powerful stimulus," said Trump. "There is a theory that I wouldn't have to go back [to Congress], but I think it would be appropriate to go back. I would ask Congress to approve it. Its a simple approval - its literally a one-sentence approval."
MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
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MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
Homepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets

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