One of the largest remaining holdups, according to two Democratic aides not authorized to speak on the record, was Sen. Pat Toomey’s insistence on restricting emergency Federal Reserve lending powers authorized in March that are set to expire at the end of the year.
Sen. Mark Warner, D-Va., said in a Friday statement that sunsetting the Fed’s authority “would set a terrible precedent, hurt the Fed’s independence, and weaken its ability to respond quickly to future crises.”
Republicans counter that the authority was already set to expire at the end of the year.
Toomey, a Pennsylvania Republican, has said the lending authority has achieved its intended goals of stabilizing the market and should be ended to prevent them from being used to supplement other policies measures.
![*** BESTPIX *** WASHINGTON, DC - DECEMBER 17: U.S. Senate Majority Leader Mitch McConnell (R-KY) walks to the Senate floor at the U.S. Capitol on December 17, 2020 in Washington, DC. Senate Majority Leader Mitch McConnell said on the Senate floor that, with a shutdown deadline looming at midnight Friday, weekend work in Congress is "highly likely." (Photo by Tasos Katopodis/Getty Images) ORG XMIT: 775601582 ORIG FILE ID: 1291809607]()
He told reporters Thursday there was “broad support” among Republicans for ending the programs, and doing so was “very important to many of us.”
The second-ranking Senate Republican, John Thune of South Dakota, told reporters Thursday the restriction of the lending authority was a “big priority” for Republicans.
Senate Majority Leader Mitch McConnell, R-Ky., vowed the Senate would keep negotiating.
“I am even more optimistic now than I was last night that a bipartisan, bicameral framework for a major rescue package is close at hand,” he said Friday morning, though he warned the Senate could stay in session through the weekend.
– Nicholas Wu
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