Washington, D.C. – At today’s Senate Banking Committee hearing, U.S. Senator Pat Toomey (R-Pa.) applauded Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell for shutting down the remarkably successful CARES Act’s temporary emergency lending facilities by year-end, as Congress and the law requires.
During the hearing, Senator Toomey said:
“I want to applaud Secretary Mnuchin for closing the 13(3) facilities by year-end, exactly as the law requires, and as Congress clearly intended. I want to thank Chairman Powell for returning the unused CARES funds back to the treasury.
“The fact is Congress entrusted both of you with some extremely powerful, unprecedented emergency, and yet temporary, tools. And I commend you for working together to deploy those tools for their intended purposes, and then putting them away now that that specific purpose has been achieved.”
“I also think it’s important to underscore how remarkably successful these facilities were in achieving that intended purpose of stabilizing credit markets and restoring the flow of private credit. In fact, it worked better than, I think, most of us even thought possible. Markets didn’t just improve, they didn’t just restore liquidity, but we reached record volumes of debt issuance, we did so at low spreads, low yields, affordable interest rates, regional banks extended credit to their customers, and according to business surveys, unmet demand for credit among credit-worthy borrowers is almost non-existent.”
“So, let’s be clear. These facilities were designed for a very specific purpose, they achieved that purpose more successfully than we could have reasonably hoped, and we should not use them to morph into some other purpose, like as a supplement and or compliment to fiscal policy.”

You can watch Senator Toomey’s full remarks here.