Powell says Fed will name borrowers, will use all its tools
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell is pledging to reveal the names and other details of the entities that borrow from the emergency programs the central bank has set up to offset the economic hit from the viral outbreak.
In prepared testimony for a Tuesday congressional hearing, Powell says the central bank will disclose the amounts borrowed and the interest rates it levies under its programs to provide credit for large corporations, state and local governments, and medium-sized businesses.
“We are deeply committed to transparency, and recognize that the need for transparency is heightened when we are called upon to use our emergency powers,” his testimony says.
Powell and Treasury Secretary Steven Mnuchin are scheduled to appear before the Senate Banking, Housing, and Urban Affairs committee Tuesday at 10 a.m. The hearing is the first oversight session on the $2 trillion federal relief package approved in early March.
The Fed had already pledged to publish the names of its borrowers from its Main Street Lending program, and some of its other lending efforts. The Main Street program, which has not yet been launched, has already attracted scrutiny from environmental groups, which charge that oil and gas drillers, most already heavily indebted, will use it as a lifeline.
Powell said the Fed will also name the companies that benefit from its two facilities that have started to purchase corporate debt, as well as its program to purchase municipal bonds and a facility that will buy securities backed by auto, student, and credit card loans.
The Fed chair also reiterated that central bank will use “our full range of tools to support the economy in this challenging time." On Sunday night, Powell said the Fed's programs were essentially unlimited, helping to spark a stock market rally Monday.
