This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.nytimes.com/2020/03/31/us/politics/mnuchin-jay-powell-coronavirus.html

The article has changed 30 times. There is an RSS feed of changes available.

Version 3 Version 4
How Powell and Mnuchin Became the Duo in Charge of Saving the Economy How Powell and Mnuchin Became the Duo in Charge of Saving the Economy
(3 days later)
WASHINGTON — On March 15, as economic devastation from the coronavirus showed no signs of abating, Jerome H. Powell, the Federal Reserve chair, aimed the full weight of the central bank against the problem.WASHINGTON — On March 15, as economic devastation from the coronavirus showed no signs of abating, Jerome H. Powell, the Federal Reserve chair, aimed the full weight of the central bank against the problem.
He and his colleagues cut rates to near-zero in an emergency Sunday night move, while also rolling out a huge program to snap up government-backed debt and sweetening agreements meant to keep dollars available overseas.He and his colleagues cut rates to near-zero in an emergency Sunday night move, while also rolling out a huge program to snap up government-backed debt and sweetening agreements meant to keep dollars available overseas.
It was not enough.It was not enough.
Markets plummeted the next morning, with panicked investors fearing that the Fed’s actions, which used almost every tool the central bank had at its unilateral disposal, would fail to stabilize the economy.Markets plummeted the next morning, with panicked investors fearing that the Fed’s actions, which used almost every tool the central bank had at its unilateral disposal, would fail to stabilize the economy.
They clamored for Mr. Powell to turn on the central bank’s emergency lending authorities, through which it could soothe dysfunctional markets. But those programs, which were used in the 2008 financial crisis, had since become more difficult to activate. The 2010 Dodd-Frank law now required the Treasury secretary, Steven Mnuchin, to sign off on any Fed lending facility.They clamored for Mr. Powell to turn on the central bank’s emergency lending authorities, through which it could soothe dysfunctional markets. But those programs, which were used in the 2008 financial crisis, had since become more difficult to activate. The 2010 Dodd-Frank law now required the Treasury secretary, Steven Mnuchin, to sign off on any Fed lending facility.
Mr. Powell’s relationship with Mr. Mnuchin — a comfortable friendship forged over weekly breakfasts and similar backgrounds in finance — suddenly morphed into a vital partnership.Mr. Powell’s relationship with Mr. Mnuchin — a comfortable friendship forged over weekly breakfasts and similar backgrounds in finance — suddenly morphed into a vital partnership.
Mr. Mnuchin, who had been in near-constant contact with Mr. Powell as markets bled, agreed that the Fed ought to use its emergency lending authorities. By the time the authorization forms arrived at the Treasury Department in search of Mr. Mnuchin’s signature, it was a formality.Mr. Mnuchin, who had been in near-constant contact with Mr. Powell as markets bled, agreed that the Fed ought to use its emergency lending authorities. By the time the authorization forms arrived at the Treasury Department in search of Mr. Mnuchin’s signature, it was a formality.
On March 17, the Fed and the Treasury Department announced that Mr. Mnuchin’s department would back the first $10 billion in losses on a new emergency lending program, an intervention meant to keep short-term loans available to companies newly desperate for financing.On March 17, the Fed and the Treasury Department announced that Mr. Mnuchin’s department would back the first $10 billion in losses on a new emergency lending program, an intervention meant to keep short-term loans available to companies newly desperate for financing.
The coronavirus poses the most significant economic threat since at least 2008, thrusting Mr. Mnuchin and Mr. Powell into key roles in determining whether the United States economy suffers a short, manageable slowdown or enters a deep and painful recession.The coronavirus poses the most significant economic threat since at least 2008, thrusting Mr. Mnuchin and Mr. Powell into key roles in determining whether the United States economy suffers a short, manageable slowdown or enters a deep and painful recession.
The $2 trillion stimulus package that President Trump signed on Friday hands a huge pot of taxpayer money — $500 billion — to Mr. Mnuchin. The bulk of that will back the Fed’s emergency lending programs, which are aimed at ensuring that credit continues flowing, enabling businesses to stay afloat, workers to keep their jobs and the economy to snap back once the virus subsides, quarantines are lifted and American life restarts.The $2 trillion stimulus package that President Trump signed on Friday hands a huge pot of taxpayer money — $500 billion — to Mr. Mnuchin. The bulk of that will back the Fed’s emergency lending programs, which are aimed at ensuring that credit continues flowing, enabling businesses to stay afloat, workers to keep their jobs and the economy to snap back once the virus subsides, quarantines are lifted and American life restarts.
Economists are now predicting a severe slowdown, with growth contracting sharply and a rise in unemployment that could reach 15 percent by midyear. Mr. Mnuchin and Mr. Powell’s efforts are critical not only to workers and businesses but also to Mr. Trump, who has staked much of his reputation on a climbing stock market and robust economy, both of which are now threatened as he faces re-election.Economists are now predicting a severe slowdown, with growth contracting sharply and a rise in unemployment that could reach 15 percent by midyear. Mr. Mnuchin and Mr. Powell’s efforts are critical not only to workers and businesses but also to Mr. Trump, who has staked much of his reputation on a climbing stock market and robust economy, both of which are now threatened as he faces re-election.
“I wish we could have our old life back. We had the greatest economy that we’ve ever had,” Mr. Trump said at a White House briefing on Sunday. “We are bringing our economy back strong like it was before. It is even better than before. A lot of the money you read about, that’s all coming back.”“I wish we could have our old life back. We had the greatest economy that we’ve ever had,” Mr. Trump said at a White House briefing on Sunday. “We are bringing our economy back strong like it was before. It is even better than before. A lot of the money you read about, that’s all coming back.”
Mr. Mnuchin and Mr. Powell have been rapidly deploying resources to try to ensure that rebound happens. Mr. Mnuchin worked on details of the new legislation with Congress, pushing for money that could be used to aid companies big and small. Mr. Powell and other Fed officials, including Randal K. Quarles, the vice chair for supervision and regulation, talked with lawmakers about the Treasury Department funding to backstop the Fed’s programs.Mr. Mnuchin and Mr. Powell have been rapidly deploying resources to try to ensure that rebound happens. Mr. Mnuchin worked on details of the new legislation with Congress, pushing for money that could be used to aid companies big and small. Mr. Powell and other Fed officials, including Randal K. Quarles, the vice chair for supervision and regulation, talked with lawmakers about the Treasury Department funding to backstop the Fed’s programs.
Mr. Mnuchin now has enormous influence in doling out funds to hard-hit industries and small businesses, and the Fed’s emergency lending programs will be pumped up with a $454 billion taxpayer investment — enough to insure against losses on what could amount to more than $4 trillion in lending.Mr. Mnuchin now has enormous influence in doling out funds to hard-hit industries and small businesses, and the Fed’s emergency lending programs will be pumped up with a $454 billion taxpayer investment — enough to insure against losses on what could amount to more than $4 trillion in lending.
“It is shaping up as a power move with quite a bit of discretionary and open-ended decision making authority being consolidated within the Federal Reserve and the secretary of the Treasury,” said Sarah Bloom Raskin, a former governor of the Federal Reserve Board who was deputy Treasury secretary in the Obama administration.“It is shaping up as a power move with quite a bit of discretionary and open-ended decision making authority being consolidated within the Federal Reserve and the secretary of the Treasury,” said Sarah Bloom Raskin, a former governor of the Federal Reserve Board who was deputy Treasury secretary in the Obama administration.
Besides backstopping the Federal Reserve’s lending facilities, the Treasury Department is helping to manage a $350 billion fund that will provide grants and loans primarily to small businesses.Besides backstopping the Federal Reserve’s lending facilities, the Treasury Department is helping to manage a $350 billion fund that will provide grants and loans primarily to small businesses.
Mr. Mnuchin will have leeway over another $46 billion in industry-specific funds that Congress has appropriated to help the airline industry and companies involved in national security. He will be able to decide which businesses are worthy of loans and loan guarantees; when interest should be waived; when restrictions on corporate stock buybacks should be lifted; and whether or not to take an equity stake in a company in exchange for bailing it out.Mr. Mnuchin will have leeway over another $46 billion in industry-specific funds that Congress has appropriated to help the airline industry and companies involved in national security. He will be able to decide which businesses are worthy of loans and loan guarantees; when interest should be waived; when restrictions on corporate stock buybacks should be lifted; and whether or not to take an equity stake in a company in exchange for bailing it out.
In some ways, Mr. Mnuchin and Mr. Powell are odd candidates to shoulder such vast responsibility. They are both financial deal makers by trade, not experts in economic crises. Nor do they have Washington’s unbending confidence: Mr. Powell has been the subject of two years of steady criticism from Mr. Trump, who has likened his Fed chair to an “enemy” and a bad golfer, while Mr. Mnuchin has drawn the skepticism of Congress for refusing to release the president’s tax returns.In some ways, Mr. Mnuchin and Mr. Powell are odd candidates to shoulder such vast responsibility. They are both financial deal makers by trade, not experts in economic crises. Nor do they have Washington’s unbending confidence: Mr. Powell has been the subject of two years of steady criticism from Mr. Trump, who has likened his Fed chair to an “enemy” and a bad golfer, while Mr. Mnuchin has drawn the skepticism of Congress for refusing to release the president’s tax returns.
At times Mr. Mnuchin, who advised Mr. Trump to tap Mr. Powell, has tried to thaw the relationship between the Fed chair and the president. In February 2019, Mr. Mnuchin facilitated a casual dinner with Mr. Trump, Mr. Powell and himself at the White House residence, where they discussed the economy, golf and the Super Bowl.At times Mr. Mnuchin, who advised Mr. Trump to tap Mr. Powell, has tried to thaw the relationship between the Fed chair and the president. In February 2019, Mr. Mnuchin facilitated a casual dinner with Mr. Trump, Mr. Powell and himself at the White House residence, where they discussed the economy, golf and the Super Bowl.
The power that Mr. Powell and Mr. Mnuchin have amassed is prompting concerns among some members of Congress and financial reform groups. Some Democrats have worried that the Fed will be able to dole out loans with few limitations. And while the $46 billion that Mr. Mnuchin oversees directly will be subject to examination by an inspector general, Mr. Trump has already suggested he could impede the integrity of that position by determining what information is shared with Congress.The power that Mr. Powell and Mr. Mnuchin have amassed is prompting concerns among some members of Congress and financial reform groups. Some Democrats have worried that the Fed will be able to dole out loans with few limitations. And while the $46 billion that Mr. Mnuchin oversees directly will be subject to examination by an inspector general, Mr. Trump has already suggested he could impede the integrity of that position by determining what information is shared with Congress.
On Monday, Mr. Mnuchin said in an interview on the Fox Business Network that the Treasury Department would soon roll out new rules that would allow small-business owners to start applying for and receiving loans on Friday.On Monday, Mr. Mnuchin said in an interview on the Fox Business Network that the Treasury Department would soon roll out new rules that would allow small-business owners to start applying for and receiving loans on Friday.
Mr. Mnuchin, whose department was already short-staffed, is recruiting additional people from across the government to help manage the new programs and is placing greater responsibility on his deputy, Justin Muzinich, to oversee the bailout money.Mr. Mnuchin, whose department was already short-staffed, is recruiting additional people from across the government to help manage the new programs and is placing greater responsibility on his deputy, Justin Muzinich, to oversee the bailout money.
The Fed, which has been monitoring the economic fallout of the virus since January, has tried to keep money flowing to both households and businesses by rolling out additional emergency lending programs. Some smooth over the municipal bond market by accepting local debt — which is issued to build roads and finance schools — as collateral. One will buy newly issued corporate bonds from highly rated companies or make loans to those firms — something the Fed has never tried before.The Fed, which has been monitoring the economic fallout of the virus since January, has tried to keep money flowing to both households and businesses by rolling out additional emergency lending programs. Some smooth over the municipal bond market by accepting local debt — which is issued to build roads and finance schools — as collateral. One will buy newly issued corporate bonds from highly rated companies or make loans to those firms — something the Fed has never tried before.
“The Fed is performing a critical function,” said Ben S. Bernanke, the former Fed chair. It “has done a really good job of rolling this out quickly.”“The Fed is performing a critical function,” said Ben S. Bernanke, the former Fed chair. It “has done a really good job of rolling this out quickly.”
The new legislation will allow the central bank to grow the size and scope of its programs and potentially push its boundaries even further. It funnels hundreds of billions into the Treasury Department’s Exchange Stabilization Fund that can be deployed to cover potential losses on the Fed’s loans to businesses, states and municipalities. Legislators have particularly urged the Fed to do more for local governments, something it has shied away from in the past but is now contemplating.The new legislation will allow the central bank to grow the size and scope of its programs and potentially push its boundaries even further. It funnels hundreds of billions into the Treasury Department’s Exchange Stabilization Fund that can be deployed to cover potential losses on the Fed’s loans to businesses, states and municipalities. Legislators have particularly urged the Fed to do more for local governments, something it has shied away from in the past but is now contemplating.
“I know of no other time that a legislature has delegated to a central bank such far-reaching authority to allocate credit,” Kathryn Judge, a professor at Columbia Law School and an expert on financial regulation, said of the program.“I know of no other time that a legislature has delegated to a central bank such far-reaching authority to allocate credit,” Kathryn Judge, a professor at Columbia Law School and an expert on financial regulation, said of the program.
The Treasury Department signs off on emergency lending programs and has input on their goals, but the Fed has historically worked out the gritty details and handled implementation, sometimes with the help of outside firms. For instance, a subsidiary of BlackRock, the world’s largest asset manager, is setting up the Fed’s corporate bond buying.The Treasury Department signs off on emergency lending programs and has input on their goals, but the Fed has historically worked out the gritty details and handled implementation, sometimes with the help of outside firms. For instance, a subsidiary of BlackRock, the world’s largest asset manager, is setting up the Fed’s corporate bond buying.
Updated June 2, 2020 Updated June 5, 2020
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said.
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
The programs are governed by some rules: They must benefit broad groups, and the Fed will answer to lawmakers for its actions. Businesses that get direct loans backed by the new funding cannot make new plans to buy back stock for a year after the loan is outstanding, though Mr. Mnuchin can waive that provision.The programs are governed by some rules: They must benefit broad groups, and the Fed will answer to lawmakers for its actions. Businesses that get direct loans backed by the new funding cannot make new plans to buy back stock for a year after the loan is outstanding, though Mr. Mnuchin can waive that provision.
Mr. Mnuchin’s moves will also be watched: The inspector general installed at the Treasury Department will be tasked with monitoring how its loans are used, and a bipartisan congressional oversight panel will be set up to foster accountability.Mr. Mnuchin’s moves will also be watched: The inspector general installed at the Treasury Department will be tasked with monitoring how its loans are used, and a bipartisan congressional oversight panel will be set up to foster accountability.
But some Democrats and financial watchdogs have expressed discomfort at concentrating so much power in the hands of so few people, warning that the lending programs might put the needs of big corporations over workers.But some Democrats and financial watchdogs have expressed discomfort at concentrating so much power in the hands of so few people, warning that the lending programs might put the needs of big corporations over workers.
“They can actually lay off workers while receiving public assistance,” Marcus Stanley, the policy director of Americans for Financial Reform, said on Twitter, referring to the Fed’s programs. “Not only that, but the door is open for big corporations to benefit from government cash while turning right around and paying that cash out to wealthy shareholders and executives, at the same time as they lay off workers.”“They can actually lay off workers while receiving public assistance,” Marcus Stanley, the policy director of Americans for Financial Reform, said on Twitter, referring to the Fed’s programs. “Not only that, but the door is open for big corporations to benefit from government cash while turning right around and paying that cash out to wealthy shareholders and executives, at the same time as they lay off workers.”
They have also questioned the integrity of the oversight process. Mr. Trump will appoint the new inspector general, and on Friday, he released a signing statement suggesting he had the power to decide what information the official could share with Congress.They have also questioned the integrity of the oversight process. Mr. Trump will appoint the new inspector general, and on Friday, he released a signing statement suggesting he had the power to decide what information the official could share with Congress.
On Sunday, Mr. Mnuchin pledged full transparency about the money but demurred about the role of the inspector general.On Sunday, Mr. Mnuchin pledged full transparency about the money but demurred about the role of the inspector general.
“There’s constitutional issues,” he said on “Fox News Sunday.” “I’m going to leave that to the lawyers and to Congress to figure out.”“There’s constitutional issues,” he said on “Fox News Sunday.” “I’m going to leave that to the lawyers and to Congress to figure out.”
Neil M. Barofsky, who was the first special inspector general of the Troubled Asset Relief Program, the $700 billion bailout for banks, said that Mr. Trump’s suggestion that the new official could be gagged might have a chilling effect.Neil M. Barofsky, who was the first special inspector general of the Troubled Asset Relief Program, the $700 billion bailout for banks, said that Mr. Trump’s suggestion that the new official could be gagged might have a chilling effect.
“It’s concerning,” Mr. Barofsky said, noting that he successfully employed the threat of notifying Congress in that role. “It might embolden other agencies to simply refuse requests for information.”“It’s concerning,” Mr. Barofsky said, noting that he successfully employed the threat of notifying Congress in that role. “It might embolden other agencies to simply refuse requests for information.”
Mr. Mnuchin has been given up to $100 million to hire private sector firms and individuals to assist in development and execution of the programs. Some Democrats have derided that money as a “slush fund” and warned Mr. Mnuchin against using it to benefit his finance friends.Mr. Mnuchin has been given up to $100 million to hire private sector firms and individuals to assist in development and execution of the programs. Some Democrats have derided that money as a “slush fund” and warned Mr. Mnuchin against using it to benefit his finance friends.
Mr. Mnuchin has already spoken to executives at his former firm, Goldman Sachs, about potentially getting involved, according to a person familiar with the matter. He has also been consulting regularly with Henry M. Paulson Jr., the former Treasury secretary, and Stephen A. Schwarzman, the chief executive of The Blackstone Group, a private equity firm, about the financial crisis-era powers that he will need to employ and the goal of reopening parts of the economy.Mr. Mnuchin has already spoken to executives at his former firm, Goldman Sachs, about potentially getting involved, according to a person familiar with the matter. He has also been consulting regularly with Henry M. Paulson Jr., the former Treasury secretary, and Stephen A. Schwarzman, the chief executive of The Blackstone Group, a private equity firm, about the financial crisis-era powers that he will need to employ and the goal of reopening parts of the economy.
At a news conference on Friday evening, Mr. Trump said that prominent Wall Street executives would be deeply involved in negotiating the terms of bailouts for companies like airlines. He specifically mentioned Laurence D. Fink, the chief executive of BlackRock, and said that Mr. Mnuchin was recruiting other “brilliant people” from Wall Street.At a news conference on Friday evening, Mr. Trump said that prominent Wall Street executives would be deeply involved in negotiating the terms of bailouts for companies like airlines. He specifically mentioned Laurence D. Fink, the chief executive of BlackRock, and said that Mr. Mnuchin was recruiting other “brilliant people” from Wall Street.
The president said that he expected the Wall Street executives would take little pay for their work.The president said that he expected the Wall Street executives would take little pay for their work.
“Peanuts, they want compared to what they normally get,” he said.“Peanuts, they want compared to what they normally get,” he said.