Toomey Says New Bill Won’t Curb Fed’s Emergency Lending Powers
- Fed’s 13(3) powers were vital tool in calming pandemic panic
- Economists warn move could tie Fed’s hands in next crisis
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Senator Pat Toomey, who says he will only back a new pandemic stimulus bill if it bars the Federal Reserve from resuscitating several of its soon-to-end crisis lending programs, insists this will not blunt the central bank’s broader emergency powers.
The Pennsylvania Republican has made his support of the roughly $900 billion congressional proposal conditional on it including language that will prevent the Fed from subsequently restoring five programs it is being forced to wind down on Dec. 31.