By Sunday evening, when Mitch Mc, Connell required a vote on a new bill, the bailout figure had broadened to more than five hundred billion dollars, with this big amount being assigned to two different propositions. Under the first one, the Treasury Department, under Secretary Steven Mnuchin, would apparently be given a budget plan of seventy-five billion dollars to provide loans to specific business and industries. The second program would run through the Fed. The Treasury Department would provide the main bank with four hundred and twenty-five billion dollars in capital, and the Fed would use this money as the basis of a mammoth financing program for firms of all sizes and shapes.
Details of how these plans would work are vague. Democrats stated the new costs would offer Mnuchin and the Fed overall discretion about how the cash would be distributed, with little openness or oversight. They slammed the proposal as a "slush fund," which Mnuchin and Donald Trump might use to bail out favored business. News outlets reported that the federal government wouldn't even need to recognize the aid receivers for up to 6 months. On Monday, Mnuchin pushed back, stating individuals had misconstrued how the Treasury-Fed partnership would work. He may have a point, however even in parts of the Fed there might not be much enthusiasm for his proposal.
during 2008 and 2009, the Fed faced a lot of criticism.
