As Treasury secretary, Janet Yellen is almost certain to pursue tighter coordination with the U.S. Federal Reserve next year -- repairing recent frictions -- though observers say she will be careful to avoid any specific move that could trigger a wave of Republican protests.

President-elect Joe Biden’s pick for Treasury was at the Fed for the better part of two decades, and saw first-hand how vital the cooperation of the two agencies is to ensuring the flow of credit amid stressed economic times.

Step one, after winning Senate confirmation, will be deciding how to proceed with several emergency Fed lending facilities backed by Treasury money and authorized by Congress through the Cares Act, after outgoing Treasury Secretary Steven Mnuchin announced he would sunset them by year-end.

Powell, Bernanke & Yellen Speak At ASSA 2019 Annual Meeting
Janet Yellen

Yellen will need to make a call on whether she has the legal authority to resurrect the programs, which the Fed said it wanted to extend. The question was made tougher by Mnuchin’s latest plan to put unused Cares Act money into the department’s general account, over which Congress has authority.

Earlier: Mnuchin Plans to Put $455 Billion Beyond Yellen’s Easy Reach