The White House and Federal Reserve appear to be at odds. The U.S. Treasury Secretary Steven Mnuchin has informed Federal Reserve Chairman Jerome Powell that the government wants to end the reserve's emergency lending programs, which have been used to boost a struggling economy during the COVID-19 pandemic. The White House believes that the $455B in funds currently held by the Fed for low-cost lending can be better used by Congress for stimulus spending.
Traditionally, there has been a strong separation between the Government and the Federal Reserve. Undermining the reserve can have overwhelmingly negative consequences for the economy, according to the U.S. Chamber of Commerce, which stated that the Fed requires liquidity to support businesses at a time of uncertainty.