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Unlucky: Do the recent changes to the Federal Reserve's powers under Section 13(3) of the Federal Reserve Act inhibit future action? | White & Case LLP


On December 27, 2020, the President signed into law the Consolidated Appropriations Act, 2021.
1 Title X of Division N of that law ( Title X ) contains several provisions that change the authority of the Board of Governors of the Federal Reserve System (the Federal Reserve ) to extend credit or purchase assets under Section 13(3) of the Federal Reserve Act (the FRA ).
2  This provision was inserted into the bill by Senator Patrick Toomey of Pennsylvania, who believed that the Federal Reserve s programs initiated under Section 13(3) and funded under the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act )
3  should be permanently discontinued and made unable to be restarted. ....

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