US equities dipped on Friday as disagreement over the use of federal relief funds offset encouraging progress toward COVID-19 vaccine approval.
Indexes’ declines began …
US equities dipped on Friday as disagreement over the use of federal relief funds offset encouraging progress toward COVID-19 vaccine approval. Indexes’ declines began late Thursday after Treasury Secretary Steven Mnuchin called on the Federal Reserve to return funds set aside for several emergency lending programs. The decision sets a December 31 expiration date for five facilities, including the Municipal Liquidity Facility and both corporate-credit programs. Mnuchin said that, while some corners of the economy continue to struggle through the pandemic, additional fiscal stimulus would help them more than taking on more debt. The Fed quickly responded with a rare public statement, saying the Treasury should extend « the full suite of emergency facilities. » The programs continue to serve « as a backstop for our still-strained and vulnerable economy, » the central bank added. Here’s where US indexes stood at the 4 p.m. ET market close on Friday: Read more: Warren Buffett compared the pandemic to a ‘hurricane,’ praised the government’s rapid response in the spring, and called for more small-business aid at a virtual event this week « It would be odd for the Fed to make this statement if it believed Mnuchin was legally obliged to act as he did, » Michael Feroli, chief US economist at JPMorgan, said in a note. « Rather, it seems like the Fed is making clear where they stand on this issue.
