FILE PHOTO: The Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 27, 2019. REUTERS/Brendan McDermid
As the pandemic advanced, the Fed set aside inhibitions about inflation, political blowback and other risks that arguably slowed its response to the 2007 to 2009 crisis, and in a matter of weeks has sequentially extended safety nets to different parts of the economy.
“People are undertaking sacrifices for the common good,” Powell said in webcast remarks hosted by the Brookings Institution. “We should make them whole. They did not cause this. This is what the great fiscal power of the United States is for, to protect these people from the hardships they are facing.”
The program offers to pump up to $500 billion into local governments, which are both on the front lines of the health battle yet also may see tax revenues collapse as unemployment rises and businesses are shut under social distancing rules aimed at curbing the spread of the virus. “The Fed made history today” by throwing its vault open to small and medium-sized businesses that are at the core of the U.S. economy, said Joe Brusuelas, an economist who focuses on mid-sized companies with consulting firm RSM.
Firms receiving the loans “must commit to make reasonable efforts to maintain payroll and retain workers,” and cannot use them to refinance existing debt, and must follow the limits on things like dividend payments and compensation set out for larger firms.
Why? Because you guys just made up a bunch of money to bailout all the over leveraged Hedge funds, banks, and other financial institutions? I made a Ferarri out of paper mache, pretty sure I'm not going to wake up to the real thing in the morning.
No chance is this going to recover quickly. If it ended tomorrow there would still be lasting damage.
ConstitutionOverCoronavirus
No. Weve just entered the recession that the fed signaled last July when it started stimulating the economy with rate cuts. A typical recession is about 4 to 6 months if we are lucky. The virus is just the straw that broke the camel's back.
he keeps writing checks to banks that never write to small businesses let alone the working man/woman the fed can GF himself
Isn't this the same moron who has been overheating the economy for the last few years and who is currently bailing out junk bond speculators? Yes, totally trustworthy.
StayHomeStaySafe USA
Is it just me or is that a lot of (as in, too many) 'ifs'...
None of which is happening right now. Pretty sure we are doomed.
What? Have you seen the unemployment? Everything is CLOSED. Talk about being out of touch with reality. Pump all the funny money you want in to the stock market, just the rich getting richer 😠
Fake people in debt without work you won't restart that fast hes spreading the optimistic idea that is far from reality
Ya think that is why Pelosi is stalling yet again?
That’s a lot of ifs
Vegas topped up the loyalty cards, let’s play!
Can’t restart without proper nationwide testing
Up until Waves 2 and 3 strike like a tsunami.
The US is more concerned abt the economy than the health of its citizens.
Wow. That's a big if.
Hey Hey! Ho Ho! President Body Bag has got to go! presidentbodybag
IF indeed
At the current rate we will hit over 20% unemployment in three weeks. That's NOT a quick recovery in the making.
IF
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