But Mr. Toomey remained concerned for months that the programs might last past the end of the year. Though Steven Mnuchin, the Treasury secretary, moved to claw back the money in mid-November, Mr. Toomey insisted that the new stimulus measure close off the programs for fear that a new Treasury secretary might try to restart the effort next year, once Mr. Biden takes office. While it was not clear exactly what the new language would say, two aides familiar with the agreement said it would prevent the new Treasury secretary from revamping carbon copies of the pandemic lending programs. Mr. Toomey had been particularly concerned that Democrats might harness the Fed’s powers to funnel cheap money to state and local borrowers. “This agreement will preserve Fed independence and prevent Democrats from hijacking these programs for political and social policy purposes,” Steve Kelly, a spokesman for Mr. Toomey, said in a statement.

Source: New York Times December 20, 2020 00:33 UTC