Stimulus Compromise Doesn’t Resolve Fed Emergency Powers Debate

A compromise reached during pandemic relief talks over restrictions on the Federal Reserve doesn’t resolve differences in how Republicans and Democrats view its emergency lending authority, setting up a potential clash over how the central bank is able to respond to future crises.

Senator Pat Toomey, a Republican from Pennsylvania, insisted on tacking a provision onto the $900 billion stimulus plan that would prohibit the Fed from restarting programs supporting corporate bonds, small and mid-sized companies, and municipalities, which are set to expire on Dec. 31.

QuickTake: The Untapped Pandemic Aid Funds in Transition Limbo

Democrats resisted but agreed ...