The U.S. economy could be headed ‘fairly quickly’ toward recovery if people stay home, government gets aid to businesses and households, and public health officials create a national plan to restart the economy, Federal Reserve Chair Jerome Powell said
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.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed rolls out $2.3 trillion to backstop 'Main Street,' local governments during crisisThe U.S. Federal Reserve on Thursday rolled out a broad, $2.3 trillion effort to bolster local governments and small and mid-sized businesses in its latest move to keep the U.S. economy intact as the country battles the coronavirus pandemic.
Read more »
Coming next from the Fed: How much for Main Street?The U.S. Federal Reserve responded fast to the coronavirus crisis with open-ended programs to keep financial markets running and ensure major companies could raise cash as they usually do through large capital markets.
Read more »
TikTok Donates $2 Million to MusiCares' COVID-19 Relief Fund“We want to help support the community that keeps us entertained,” TikTok reps say
Read more »
UnitedHealth expedites $2 billion in hospital payments amid pandemic - Business InsiderUnitedHealth Group is accelerating $2 billion in payments to medical providers treating the surging number of patients infected with the coronavirus.
Read more »
Trump Fires Watchdog Overseeing $2 Trillion in Coronavirus Stimulus FundsThe firing of the Pandemic Response Accountability Committee watchdog is just part of an administration-wide purge of inspectors general
Read more »
Wall Street climbs after Fed stuns markets again with aidStocks open higher on Wall Street after the Federal Reserve launched its latest effort to support the economy through the coronavirus outbreak. The central bank said it took actions to provide up to $2.3 trillion in additional lending.
Read more »