Vote On $900BN Stimulus Package Imminent After Senators Reach Deal On Fed Powers

Read more on this subject: Senate/Senators
News Story Source: by Tyler Durden
The deal had been held up over a dispute over the Fed's emergency lending facilities, such as its unilateral ability (with Treasury permission) to buy corporate bonds and ETFs in the open market, but at around 9 p.m. on Saturday, Republicans told Schumer that they would accept a compromise deal which would allow the Fed to retain its ability to set up emergency lending programs without congressional approval. But the Fed wouldn't be able to replicate programs identical to the ones it started in March at the beginning of the pandemic without the approval of Congress; in short if the Fed is to restart any of the 4 emergency 13(3) programs and lending programs that are set to expire on Dec 31 (shown in red below), it will have to get Congressional approval. These four programs are the market corporate credit facility, the secondary market corporate credit facility, the Main Street lending program and the municipal credit facility.

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