"The Federal Reserve would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy", the Washington Post reported.
"Luckily, whatever the Trump Treasury does, the Biden Administration has the authority to ask the Fed to restart these lending programs next year", he added.
Mnuchin said that the programs were no longer needed, but in a short but extraordinary response, the Fed publicly disagreed, signaling a rift between the Treasury and the central bank. "We need this money to go help small businesses that are still closed".
As the lone Democrat remaining on the Fed Board of Governors, she has often staked out minority positions that draw attention, such as opposing moves that ease rules governing big banks.
The euro was up at $1.1881 while the yen weakened to 103.8 per dollar.
Washington, Nov 20 (IANS) US Treasury Secretary Steven Mnuchin has asked the Federal Reserve to end five emergency Covid-19 lending facilities and return $455 billion of unused funds.
The announcement was not expected by Fed officials, who had said this week that the programmes should be extended, and told Mr Mnuchin so immediately after his decision was made public.
"While the backstop measures have been little used so far, the deteriorating health and economic backdrop could shine a bright light on the Fed's diminished recession-fighting arsenal and prompt an adverse market reaction", said Gregory Daco, chief USA economist at Oxford Economics.
"I applaud Treasury Secretary Steven Mnuchin's decision to wind down, by year-end, the CARES Act's temporary, emergency lending facilities, as Congress intended and the law requires", Toomey said in a statement Thursday.
"Congress should repurpose this money toward the kinds of urgent, important, and targeted relief measures that Republicans have been trying to pass for months", McConnell said in a statement.
A Treasury secretary appointed by President-elect Joe Biden would be able to reauthorize the programs upon taking office, but that wouldn't be until late January at the earliest. "When the right time comes - and I don't think that time is yet or very soon - we'll put those tools away".
Neither program has lived up to its potential so far, with the Municipal Lending program making just one loan, while the Main Street program has made loans totaling around $4 billion, to about 400 companies.
Mr Pat Toomey, a Republican senator poised to lead the Banking Committee, which overseas the Fed, if Republicans hold the Senate, applauded the Treasury's actions.
A senior Democratic aide told Reuters there had been a mid-afternoon meeting on Thursday among congressional aides that discussed coronavirus relief and efforts to pass a $1.4 trillion bill to keep government agencies operating beyond December 11 when current funding expires.