The Fed’s $4 Trillion Lifeline Never Materialized. Here’s Why.

The Federal Reserve was meant to take $454 billion and drastically expand it. So far, it has lent $20 billion.

#banking-and-financial-institutions, #coronavirus-aid-relief-and-economic-security-act-2020, #credit-and-debt, #federal-aid-us, #federal-budget-us, #federal-reserve-system, #house-of-representatives, #interest-rates, #local-government, #mnuchin-steven-t, #regulation-and-deregulation-of-industry, #senate, #stocks-and-bonds, #treasury-department, #trump-donald-j, #united-states-economy, #united-states-politics-and-government

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Why Biden Will Need to Spend Big

The economic case for deficit spending is overwhelming.

#biden-joseph-r-jr, #coronavirus-2019-ncov, #credit-and-debt, #federal-budget-us, #federal-reserve-system, #interest-rates, #savings, #united-states-economy, #united-states-politics-and-government

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Finding the Right Path in an Up-and-Down Market

Does the latest twist herald the end of a bull run or the beginning of a shift toward long-neglected niches?

#american-express-company, #banking-and-financial-institutions, #blackrock-inc, #chegg-inc, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #credit-and-debt, #federal-reserve-system, #goldman-sachs-group-inc, #inflation-economics, #intercontinental-exchange-inc, #interest-rates, #lazard-llc, #leuthold-group, #medtronic-inc, #nasdaq-composite-index, #netflix-inc, #recession-and-depression, #roku, #standardpoors-500-stock-index, #stimulus-economic, #stocks-and-bonds, #trump-donald-j, #unemployment-insurance, #united-states-economy, #united-states-politics-and-government, #vanguard-group-inc

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Jerome Powell, Fed Chair, Says Economy Has ‘a Long Way to Go’

Jerome H. Powell, the Federal Reserve chair, called the recovery “incomplete” and highlighted that it was better to overdo the pandemic policy response than to undershoot.

#coronavirus-2019-ncov, #federal-reserve-system, #powell-jerome-h, #unemployment, #unemployment-insurance, #united-states-economy, #united-states-politics-and-government

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U.S. Household Wealth Rose Before the Pandemic, but Inequality Persisted

A Federal Reserve survey of family finances shows that inequality was high last year. It’s likely to worsen because of the pandemic.

#black-people, #coronavirus-2019-ncov, #families-and-family-life, #federal-reserve-system, #hispanic-americans, #income, #income-inequality, #labor-and-jobs, #recession-and-depression, #stocks-and-bonds, #unemployment, #united-states-economy, #wages-and-salaries

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$2.50 a Year in Interest? That’s What $5,000 in Savings Gets

With the Federal Reserve keeping rates low, home buyers are benefiting. But savers? Their average interest rate is just 0.05 percent.

#banking-and-financial-institutions, #certificates-of-deposit, #content-type-service, #coronavirus-2019-ncov, #federal-deposit-insurance-corp, #federal-reserve-system, #interest-rates, #personal-finances, #savings

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Fed Forecasts Low Interest Rates for Years, and Until Inflation Picks Up

The Federal Reserve’s latest economic forecasts suggest that interest rates will remain near zero at least through 2023.

#banking-and-financial-institutions, #credit-and-debt, #federal-open-market-committee, #federal-reserve-system, #inflation-economics, #interest-rates, #powell-jerome-h, #stimulus-economic, #united-states-economy

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Fed Pledges Low Rates for Years, and Until Inflation Picks Up

Federal Reserve economic forecasts show that interest rates will remain near zero at least through 2023.

#banking-and-financial-institutions, #credit-and-debt, #federal-open-market-committee, #federal-reserve-system, #inflation-economics, #interest-rates, #powell-jerome-h, #stimulus-economic, #united-states-economy

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How the Fed’s Quick Action May Have Given Congress Cover for Inaction

By doing its job of stabilizing the financial system, it has reduced the sense of urgency for lawmakers to help ordinary Americans.

#coronavirus-aid-relief-and-economic-security-act-2020, #federal-reserve-system, #powell-jerome-h, #stimulus-economic, #united-states-economy

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Fed Chair Sets Stage for Longer Periods of Lower Rates

Jerome H. Powell said the central bank would focus its efforts on fostering a strong labor market while tolerating higher inflation.

#federal-reserve-system, #inflation-economics, #interest-rates, #powell-jerome-h, #recession-and-depression, #unemployment

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The Senate’s on Vacation While Americans Starve

Thirty million households didn’t have enough food in the last week. Only the Fed has acted forcefully.

#coronavirus-aid-relief-and-economic-security-act-2020, #federal-reserve-system, #senate, #shutdowns-institutional, #stimulus-economic, #unemployment, #united-states-economy, #united-states-politics-and-government

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We Just Crossed the Line Debt Hawks Warned Us About for Decades

The country’s debt now exceeds the size of its gross domestic product. For decades, this was considered a doomsday scenario that would wreck the economy. So far, that hasn’t happened.

#congressional-budget-office, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-reserve-system, #government-bonds, #gross-domestic-product, #interest-rates, #national-debt-us, #united-states-economy, #united-states-politics-and-government

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Fed Officials Said the Economy Needed More Help From Congress

Minutes from the Federal Reserve’s July meeting show that some officials fretted as expanded unemployment insurance ran out.

#coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #coronavirus-reopenings, #federal-open-market-committee, #federal-reserve-system, #inflation-economics, #interest-rates, #labor-and-jobs, #stimulus-economic, #unemployment, #unemployment-insurance, #united-states-economy

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S&P 500 at Record as Stock Market Defies Economic Devastation

Investors have cast the nearly relentless drumbeat of bad news aside to focus on any signs that the worst of the coronavirus pandemic might be over.

#amazon-com-inc, #apple-inc, #dow-jones-stock-average, #federal-reserve-system, #microsoft-corp, #recession-and-depression, #standardpoors-500-stock-index, #stocks-and-bonds, #united-states-economy

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Oversight Member Blasts the Fed’s Efforts to Rescue Main Street

The Federal Reserve president leading the Main Street lending program testified before a congressional commission, as one member labeled it a “failure.”

#banking-and-financial-institutions, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #credit-and-debt, #federal-reserve-system, #mnuchin-steven-t, #powell-jerome-h, #ramamurti-bharat, #rosengren-eric-s, #small-business, #treasury-department, #united-states-economy

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How Pimco’s Cayman-Based Hedge Fund Can Profit From the Fed’s Rescue

Congress said borrowers in taxpayer-backed rescue programs had to be from the United States. Wall Street has a workaround.

#blackrock-inc, #coronavirus-2019-ncov, #corporations, #credit-and-debt, #federal-reserve-system, #interest-rates, #pimco-pacific-investment-management-company, #stimulus-economic

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Federal Reserve Leaves Rates Near Zero as Economic Recovery Sputters

Federal Reserve officials made clear that they will work to bolster the economy as the pandemic hurts business activity and the job market.

#coronavirus-2019-ncov, #federal-reserve-system, #interest-rates, #unemployment, #united-states-economy, #united-states-politics-and-government

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New Gold Rush Pushes Price to Record Highs

Prices are up 27 percent this year, as the Fed’s policies drive investors to hold more gold.

#banking-and-financial-institutions, #coronavirus-2019-ncov, #credit-and-debt, #currency, #federal-reserve-system, #gold, #inflation-economics, #interest-rates, #stocks-and-bonds, #united-states-economy, #us-dollar-currency, #world-gold-council

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A Hedge Fund Bailout Highlights How Regulators Ignored Big Risks

The Dodd-Frank financial law succeeded at making banks safer, but empowered shadowy corners of finance that nearly wrecked the system in March.

#banking-and-financial-institutions, #coronavirus-2019-ncov, #dodd-frank-wall-street-reform-and-consumer-protection-act-2010, #federal-reserve-system, #financial-stability-oversight-council, #government-bonds, #hedge-funds, #mnuchin-steven-t, #prices-fares-fees-and-rates, #regulation-and-deregulation-of-industry, #securities-and-exchange-commission, #stocks-and-bonds, #treasury-department, #united-states-economy, #united-states-politics-and-government

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God Help Us if Judy Shelton Joins the Fed

Trump’s latest unqualified nominee to the Federal Reserve Board must be rejected.

#federal-reserve-system, #gold-standard-monetary, #powell-jerome-h, #shelton-judy, #trump-donald-j, #united-states-economy

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Shelton Clears Senate Committee, Moving Trump’s Pick Closer to Fed Board

Trump’s two Federal Reserve nominees, including hot-button pick Judy Shelton, cleared a committee vote and will proceed to the Senate.

#appointments-and-executive-changes, #banking-and-financial-institutions, #federal-reserve-system, #senate-committee-on-banking, #shelton-judy, #trump-donald-j, #united-states-economy, #united-states-politics-and-government, #waller-christopher-1959

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Climate Change Poses ‘Systemic Threat’ to the Economy, Big Investors Warn

Financial regulators should act to avoid economic disaster, according to a letter from pension funds and other investors representing almost $1 trillion in assets.

#banking-and-financial-institutions, #environment, #federal-reserve-system, #global-warming, #greenhouse-gas-emissions, #regulation-and-deregulation-of-industry, #securities-and-exchange-commission, #united-states-economy, #united-states-politics-and-government

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Businesses Are Supposed to Cut Debt in a Downturn. Why Not Now?

The Federal Reserve’s efforts to stabilize markets have touched off an even bigger borrowing binge than corporate America was already on.

#abercrombiefitch-co, #banking-and-financial-institutions, #citigroup-inc, #credit-and-debt, #expedia-inc, #federal-reserve-system, #jpmorgan-chasecompany, #live-nation-entertainment-inc, #recession-and-depression, #stocks-and-bonds, #united-states-economy

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Trump’s Hot-Button Fed Pick Faces Senate Committee Vote This Week

Judy Shelton, a nominee for the powerful Federal Reserve Board who has unorthodox economic views, could advance to the full Senate.

#appointments-and-executive-changes, #banking-and-financial-institutions, #federal-reserve-system, #gold-standard-monetary, #interest-rates, #senate-committee-on-banking, #shelton-judy, #united-states-economy, #united-states-politics-and-government, #waller-christopher-1959

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Mortgage Rates Drop Below 3% for First Time, Tempting Home Buyers

Thanks to Federal Reserve policy, the average rate on a 30-year fixed mortgage fell to 2.98 percent. That could spur buying and construction.

#federal-home-loan-mortgage-corp-freddie-mac, #federal-reserve-system, #interest-rates, #mortgages, #real-estate-and-housing-residential

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Stocks Generate Big Gains and Bigger Questions

A powerful rally during drastically deteriorating economic conditions has left the market richly valued and facing great uncertainty.

#banking-and-financial-institutions, #brazil, #citigroup-inc, #cnbc, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #coronavirus-reopenings, #credit-and-debt, #europe, #federal-reserve-system, #house-of-representatives, #inflation-economics, #interest-rates, #japan, #latin-america, #morningstar-inc, #personal-finances, #prices-fares-fees-and-rates, #quarantines, #recession-and-depression, #second-quarter-2020, #senate, #shutdowns-institutional, #standardpoors-500-stock-index, #stocks-and-bonds, #unemployment, #united-states-economy, #united-states-politics-and-government, #university-of-california-los-angeles

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The Mystery of High Stock Prices

Why is the market doing so well when the economy is doing so poorly?

#coronavirus-2019-ncov, #federal-reserve-system, #standardpoors-500-stock-index, #stocks-and-bonds, #united-states-economy

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Federal Reserve Minutes Show a Litany of Reasons to Worry About Economy

Minutes from the Federal Reserve’s June meeting show that officials remained seriously concerned, even as states reopened.

#banking-and-financial-institutions, #consumer-behavior, #coronavirus-2019-ncov, #coronavirus-reopenings, #federal-reserve-system, #inflation-economics, #interest-rates, #unemployment, #united-states-economy

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Madeline McWhinney Dale, Trailblazing Banker, Is Dead at 98

She was the first female officer of the Federal Reserve Bank. Later, in another first, she ran a commercial bank largely owned and operated by women.

#banking-and-financial-institutions, #deaths-obituaries, #federal-reserve-system, #mcwhinney-dale-madeline-1922-2020, #women-and-girls

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The Market Partied Like It Was 1932

A remarkable snapback rally, after a deep coronavirus-induced plunge, took stocks into rare and, in some ways, troubling territory.

#automobile-renting-and-leasing, #bespoke-investment-group, #coronavirus-2019-ncov, #coronavirus-reopenings, #federal-reserve-system, #goldman-sachs-group-inc, #great-depression-1930s, #impeachment, #inflation-economics, #quarantines, #recession-and-depression, #securities-and-exchange-commission, #solomon-david-m, #standardpoors-500-stock-index, #stocks-and-bonds, #unemployment, #united-states, #united-states-economy

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A Penny for Your Thoughts Could Be a Lot Harder to Find

Coins have become scarce as virus lockdowns keep people from emptying their coin jars in exchange for paper bills.

#banking-and-financial-institutions, #coronavirus-2019-ncov, #currency, #federal-reserve-system, #shortages, #shutdowns-institutional, #united-states-economy, #united-states-mint, #us-dollar-currency

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Fed Caps Dividends and Limits Buybacks by Big Banks

“Several” banks could near minimum capital levels if the pandemic recession worsens, Fed officials said, as it announced its stress-test results.

#banking-and-financial-institutions, #coronavirus-2019-ncov, #federal-reserve-system, #stocks-and-bonds, #united-states-economy

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‘There’s Probably Never Been More Uncertainty,’ Fed Official Warns

Federal Reserve policymakers said the economic outlook is risky yet the central bank’s point man on supervision suggested regulators will not require banks to raise capital.

#banking-and-financial-institutions, #coronavirus-2019-ncov, #coronavirus-reopenings, #federal-reserve-system, #recession-and-depression, #united-states-economy

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You Now Get Almost Nothing for Your Money, but It Could Be Worse

In this crisis, money is priceless, yet banks and money market funds will pay you close to zero in interest for years. That’s if everything turns out well.

#asset-allocation-personal-finances, #banking-and-financial-institutions, #blackrock-inc, #crane-peter-g, #credit-and-debt, #federal-deposit-insurance-corp, #federal-reserve-system, #fidelity-investments, #finances, #interest-rates, #money-market-accounts, #mutual-funds, #nonprofit-organizations, #pensions-and-retirement-plans, #prices-fares-fees-and-rates, #regulation-and-deregulation-of-industry, #stocks-and-bonds, #subprime-mortgage-crisis, #t-rowe-price-group-inc, #vanguard-group-inc

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Did Washington Get in Uber’s Way?

Uber had been courting Grubhub for months, but the food-delivery rival will sell itself to a European rival instead. Regulations are partly to blame.

#amazon-com-inc, #facial-recognition-software, #federal-reserve-system, #george-floyd-protests-2020, #grubhub-inc, #just-eat-takeaway-com, #mergers-acquisitions-and-divestitures, #uber-technologies-inc, #united-states-economy

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Fed Leaves Rates Unchanged and Projects Years of High Unemployment

Federal Reserve officials indicated they expected the economic recovery from the pandemic-induced recession to be a slow one, with rates near zero for years.

#coronavirus-2019-ncov, #federal-reserve-system, #interest-rates, #powell-jerome-h, #unemployment, #united-states-economy

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Here’s What to Watch at the Fed’s June Meeting

The central bank will release its first set of economic projections of 2020, and is expected to signal that rates will be at rock-bottom for years.

#banking-and-financial-institutions, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-reserve-system, #interest-rates, #powell-jerome-h, #quarles-randal-k, #stimulus-economic, #unemployment, #united-states-economy

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Federal Reserve June Meeting: What to Watch

The central bank will release its first set of economic projections of 2020, and is expected to signal that rates will be at rock-bottom for years.

#banking-and-financial-institutions, #coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #federal-reserve-system, #interest-rates, #powell-jerome-h, #quarles-randal-k, #stimulus-economic, #unemployment, #united-states-economy

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Forget Swooshes and V’s. The Economy’s Future Is a Question Mark.

Is it a V, an L or a W? Economists are giving up on assigning a letter to the wildly uncertain recovery that lies ahead.

#budgets-and-budgeting, #coronavirus-2019-ncov, #coronavirus-reopenings, #economic-conditions-and-trends, #federal-reserve-system, #shutdowns-institutional, #unemployment, #united-states-economy

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The Fed Should Not Subsidize Fossil Fuels

The Fed should not be directing taxpayer money to further entrench the carbon economy.

#credit-and-debt, #federal-reserve-system, #greenhouse-gas-emissions, #labor-and-jobs, #natural-gas, #oil-petroleum-and-gasoline, #united-states, #united-states-economy

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Dismal Earnings, Bullish Stock Investors and the Fed’s Invisible Hand

First-quarter profits shrank at the fastest rate in over a decade. Analysts don’t like what they see coming down the pike. Investors keep pushing stocks higher.

#banking-and-financial-institutions, #company-reports, #coronavirus-2019-ncov, #corporations, #credit-and-debt, #federal-reserve-system, #standardpoors-500-stock-index, #stocks-and-bonds, #united-states-economy

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Rock-Bottom Interest Rates May Be Here to Stay

Once the labor market begins to recover, the Federal Reserve’s experience in the pre-pandemic, record-long economic expansion is likely to influence when its raises rates.

#coronavirus-2019-ncov, #federal-reserve-system, #inflation-economics, #interest-rates, #labor-and-jobs, #powell-jerome-h, #prices-fares-fees-and-rates, #shutdowns-institutional, #unemployment, #united-states-economy

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Fed Chair Warns This Is a ‘Downturn Without Modern Precedent’

It’s impossible to guess what the trajectory for the economy will look like, a series of central bankers warned. That makes nimbleness key.

#brainard-lael, #clarida-richard-h-1957, #coronavirus-2019-ncov, #economic-conditions-and-trends, #federal-reserve-bank-of-new-york, #federal-reserve-system, #labor-and-jobs, #powell-jerome-h, #recession-and-depression, #unemployment, #united-states-economy, #williams-john-c

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Fed Is Wary About the Post-Pandemic Economy, April Minutes Show

Notes from the Federal Reserve’s late-April meeting showed that officials were worried that the coronavirus might cause a lasting hit to the economy.

#coronavirus-2019-ncov, #federal-reserve-system, #interest-rates, #labor-and-jobs, #powell-jerome-h, #quarantines, #unemployment, #united-states-economy

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Too Big to Fail: The Entire Private Sector

Large parts of financial markets are now being managed by the government. Even if they don’t like it, investors must acknowledge it.

#banking-and-financial-institutions, #coronavirus-2019-ncov, #credit-and-debt, #federal-reserve-system, #government-bonds, #powell-jerome-h, #regulation-and-deregulation-of-industry, #shutdowns-institutional, #stock-buybacks, #stocks-and-bonds

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Government Spending? In This Economy?

Congress is debating how much to spend on economic relief. Every plan will require borrowing money the U.S. doesn’t have.

#coronavirus-2019-ncov, #coronavirus-aid-relief-and-economic-security-act-2020, #credit-and-debt, #federal-budget-us, #federal-reserve-system, #house-of-representatives, #national-debt-us, #powell-jerome-h, #recession-and-depression, #senate, #unemployment, #united-states-economy, #united-states-politics-and-government

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Fed Chair Says Economic Recovery May ‘Stretch’ Through End of 2021

Jerome H. Powell, who heads the central bank, predicted a slow economic recovery and reiterated that policymakers may need to do more.

#60-minutes-tv-program, #coronavirus-2019-ncov, #credit-and-debt, #federal-reserve-system, #government-bonds, #powell-jerome-h, #recession-and-depression, #shutdowns-institutional, #unemployment, #united-states-economy

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