This will undoubtedly make Bidens easy road worse. Last week, the rare falling out between the Federal Reserve and the Treasury Department has once again exposed the differences on economic easing. Behind the differences, the core of the political parties struggle lies in the trump administrations efforts to take away the optional economic stimulus tools from Bidens ammunition depot on the eve of Georgias runoff election and the eve of regime change, forming a check on the easing policy after Biden took office.
Now that the interest rate is zero, only 3% of the funds originally planned to be used for emergency loan instruments are firepower, and the $455 billion diversion is tantamount to temporarily blocking one of the most direct ways for the Federal Reserve to boost the economy. Democrats have to focus on the municipal bond purchase program and the main street loan program for small and medium-sized enterprises as stimulus options. If this back road is cut off, small and medium-sized enterprises, state and local governments will lose a helping hand in a difficult period.
With Congress unable to provide more money, analysts say the Biden administration has little choice but temporary tax cuts or smaller structural reforms to further boost the economy directly, and even these measures will only help in the long run. It is very irresponsible for the Treasury Department to try to prematurely terminate support for small businesses across the United States in the face of a new wave of failures, Biden spokesman Kate bidingfield said in a statement At this fragile moment, as the epidemic and economic crisis intensify again, we should strengthen the governments ability to respond to and support the economy, rather than destroy it. Source: Wall Street, editor in charge: Chen Hequn_ NB12679
In a statement, Biden spokesman katebedingfield said:
It is very irresponsible for the Treasury Department to try to terminate its support for small businesses in the United States as they face a new wave of failures At this fragile moment, as the epidemic and economic crisis intensify again, we should strengthen the governments ability to respond to and support the economy, rather than destroy it.