Dec. 1 (UPI) — Treasury Secretary Steve Mnuchin and Federal Reserve Chairman Jerome Powell will testify within the Senate on Tuesday concerning the ongoing federal financial response to the coronavirus pandemic, a topic that has divided the 2 in latest months.

The 2 leaders will reply questions from members of the Senate banking committee throughout its quarterly evaluation of the implementation of the $2 trillion CARES Act, which was handed in March as the federal government’s first main financial reply to the well being disaster.

Tuesday’s listening to is scheduled to start at 10 a.m. EST.

In ready remarks, Powell referred to as for the continuation of a number of Federal Reserve lending applications established by the CARES Act which are set to run out on the finish of the yr.

Beneath the legislation, the Fed should return any unused CARES funds to the Treasury on Dec. 31. Barely greater than $100 billion has been given by lending applications that now face a phase-out — together with the Foremost Avenue lending facility, which supplies financing to small and medium-sized companies.

“These applications function a backstop to key credit score markets and have helped restore the circulate of credit score from personal lenders by regular channels,” Powell stated. “We’ve deployed these lending powers to an unprecedented extent.”

Mnuchin, nevertheless, says these funds can be higher spent elsewhere.

“Based mostly on latest financial knowledge, I proceed to imagine {that a} focused fiscal bundle is probably the most acceptable federal response,” the treasury secretary says in his ready remarks.

“I strongly encourage Congress to make use of the $455 billion in unused funds from the CARES Act to move an extra invoice with bipartisan assist.”

Powell tied the financial outlook to controlling a resurgence of coronavirus circumstances.

“The rise in new COVID-19 circumstances, each right here and overseas, is regarding and will show difficult for the following few months,” he stated.

“A full financial restoration is unlikely till persons are assured that it’s secure to re-engage in a broad vary of actions.”