In this report, we assess FRB Chairman Powell’s appearance today before the Senate Banking Committee.  While Chairman Crapo (R-ID) continued to demand quick operationalization of all the FRB’s facilities, Sen. Toomey (R-PA) argued that operationalizing the corporate facilities could interfere with market pricing.  Mr. Powell stressed that the FRB needs to follow-through on its commitment to operationalize the facilities even though conditions have improved, saying that the facilities are there in case the economy “turns bad.”  Indicating that the Main Street Lending Program is still a work in progress, Mr. Powell also said that the FRB is considering an asset-based approach to calculating maximum loan sizes to address certain industries that may not now be able to use the program.  In addition to reiterating his demands for subjecting facility participants to governance and distribution restrictions, Ranking Member Brown (D-OH) also said that participants should be required to adopt policies that combat inequality.

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