The Federal Reserve has doled out billions of dollars in emergency loans to keep the economy afloat during a crippling pandemic, garnering broad bipartisan praise, Politico reported. Now, the lawmaker who is likely to head the powerful Senate Banking Committee if Republicans keep control of the Senate is signaling that the Fed should stop. “If someone wants to make the case that we need the government to give money to people or businesses because they’re struggling, by all means you can make that case,” said Sen. Pat Toomey (R-Pa.). “But that’s not a Fed exercise.” Toomey believes that the central bank’s emergency programs — which he called “wildly successful” — should wind down at the end of the year, a spokesperson confirmed. He’s concerned that if the programs are extended, they will be seen as a substitute for fiscal policy, the tax and spending decisions that are the responsibility of Congress and the president. While the Fed is an independent agency whose board makes its own policy decisions, it is overseen by the Banking Committee and is sensitive to its views.
