Fed Rebuked Over Loan Terms That Don’t Explicitly Bar Layoffs
- Businesses to make ‘reasonable’ efforts to keep workers: Fed
- Oversight board members pledge close watch on stimulus use
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The Federal Reserve is facing mounting questions from members of a key watchdog for not requiring mid-sized businesses to refrain from layoffs in exchange for accepting taxpayer-backed funds.
The Fed drew rebukes from two appointees from the Congressional oversight committee after it updated a term sheet for its Main Street Lending Facilities Thursday that included guidance on whether participants should make efforts to retain workers.