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Federal Reserve Board of Governors Evans says he is disappointed with the Treasury’s decision to end the emergency lending program.

Charles Evans, President of the Federal Reserve Bank-Chicago, will speak at a conference held at the Federal Reserve Bank-Chicago on June 4, 2019.

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Federal Reserve Board of Governors Charles Evans said Friday that he was disappointed that the Treasury had decided not to extend some Federal Reserve Board emergency lending programs to small businesses and local governments.

“Our facility was very helpful and serves as a backstop when the market gets into more difficult situations,” Evans said in an interview with CNBC.

read: Next to the market after Treasury Secretary Steven Mnuchin pulled a $ 455 billion plug

“It’s a shame because that backstop role may be important for quite some time,” Evans said.

The decision itself was not a surprise. However, the timing of Mnuchin’s decision to end the program was unexpected, said Ian Katz, director of Capital Alpha Partners.

Mnuchin could have waited a few more weeks to see the latest economic data.

The Fed’s response was quick and powerful. In a statement, the Fed said it wanted to continue with its complete suite of programs.

“It was the first time the Fed had openly opposed the Treasury,” Katz said.

In an interview, Evans said he was “optimistic” that the Treasury and the Fed would continue to work closely together.

Stock index futures showed a low start on Friday. Dow Jones Industrial Average 30 kinds average DJIA,
-0.30%
It rose 44 points on Thursday.

Federal Reserve Board of Governors Evans says he is disappointed with the Treasury’s decision to end the emergency lending program.

Source link Federal Reserve Board of Governors Evans says he is disappointed with the Treasury’s decision to end the emergency lending program.

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