Too risky? Fed pressed to expand aid to some businesses
Lawmakers are pressing the central bank to deliver more aid to struggling small and mid-sized businesses. And now many lawmakers are asking the Fed to expand its lending to small and medium-sized businesses, by allowing companies to offer assets such as commercial properties as collateral. The decision is on the doorstep of Fed Chairman Jay Powell and Steven Mnuchin, the Trump administrations treasury secretary. Its risky because it can be hard for the Fed to accurately appraise assets right now, he told The Associated Press. If it makes riskier loans, the Fed may be seen as propping up teetering zombie businesses that could default on payments.