Trump strips US Fed of emergency credit powers in latest scorched-earth move
Ambrose Evans-Pritchard
Fri, November 20, 2020, 10:22 PM GMT+9·6 min read
The Trump Administration is to shut down the emergency lending powers of the US Federal Reserve, taking extraordinary action to block reserve funds for the incoming Biden Treasury and prevent a Democrat bail-out of state and local governments.
The pre-emptive strike marks a breakdown in the normal co-operation between the US Treasury and the Fed, and comes just as the winter wave of Covid-19 reaches a crescendo. The services sector is already spiralling back into contraction, with a cliff-edge approaching for jobless support.
“We are in a perilous moment for the economy,” said Jason Furman, the former head of the White House Council of Economic Advisors.
https://finance.yahoo.com/news/trump-strips-us-fed-emergency-132252537.html