Republicans are negotiating to make sure that the Federal Reserve’s emergency lending powers are limited. This has cost a delay in the stimulus talks, which were aimed at providing relief funds to the masses.
The legal counsel of Republicans wants Federal lending programs in the CARES act to be ended by the year-end. Whereas the Democrats believe that these programs can be extended into the next year.
There is one provision that can get the Republican lawmakers to show their support for stimulus payouts. It is believed that a second payout of $1200 stimulus checks is going to jeopardize the budget.
Congress has to ensure that the budget deficit is kept at a minimum. The deficit-based objections can be put to rest if the federal lending programs are ended by the year-end.
Republicans have a genuine fear that the new Treasury Secretary will restart the facilities, which will affect the Federal Reserve. These facilities can be used to make sure that the money goes to the financially troubled blue states to damage Republicans in Senate.
The Republicans are going to seemingly gain control of the Senate in the next year. It is believed that the Democrats are taking this opportunity to get their bill approved.
There has already been an authorization of $429 billion in the CARES act to support lending facilities. This hefty amount is paid from the Federal Reserve while the returns were only $25 billion in loans.
Attempts to provide the money to the states is politicizing the federal government and the lending programs are adding to the problems. The Democrats have been accusing the Republicans of making the transition process difficult.
The Democrats believe that they are sabotaging the presidency by not letting the stimuli talks prevail. The Republicans have been reluctant in recognizing Joe Biden as the next president of the United States.
Elizabeth Warren believes that the Republicans should not insist on any bill that is going to restrict the federal lending programs. It is also believed by her that it is an attempt to sabotage the new president-elect’s economic policies.
The Democrats are working to include emergency aid so that the states can benefit from it. Whereas the Republicans warned that the Federal Reserve is not disturbed by restarting the loan programs.