Federal Reserve Unveils Emergency Lending Program
We learned another six point. Six million people in this economy have lost their more on that in just a minute for Mitchell Hartman but at that very same stroke of eight thirty the Federal Reserve reached in and grabbed the macro economic headlines with news. That it's making another two point. Three trillion dollars available to businesses and state and local governments. The details honestly our weedy so we will concentrate instead on the tone and tenor of what Powell said in a Webinar. This morning hosted by the Brookings Institution many many parts of the capital markets and lending more. Broadly stopped functioning and That is exactly the situation that our emergency powers are meant to address so we have moved in as I mentioned our priority or those areas of the markets that are most fundamental to supporting the real economy. I know what you want to know right. What does the guy running the real American economy right now? Think about the prospects for the real American economy right now when the virus does run its course and it's safe to go back to work and save business to open Then we would expect there to be a fairly quick rebound as people do go back to work and start resuming normal levels of economic activity. I think most people expect that to happen in the second half of this year after the second quarter which of course ends on June thirty to be clear there was some nuts and bolts. Economics disgust in response to questions from David Wessel. Also Brookings and another public radio program. You might listen to as well questions. Like G chair PAL BETWEEN ALL THE MONEY. Your adding to the economy and all the money congress is authorizing. You're worried about inflation at all. There are certainly I would say these are programs. That were developing at a high rate of speed. We don't have the luxury of taking our time the way we usually do. We're trying to get help quickly to the economy as it's needed and I I worry that you know in hindsight you will see that we could have done things differently but But I one thing I don't worry about is inflation right now. Speaking of Congress or as Paul and his fed colleagues like to say fiscal policy makers yeah. They got some work to do. We're not responsible for fiscal policy. We don't give public advice to Congress on Fiscal Policy. I will say that As I mentioned in my remarks in many cases what people really need is direct. Fiscal Support Rather than Alone and what we can do loan. So there's A. There's a big need for fiscal policy. Finally one last thing just because I think it's really important here. Actually it's the why of what the Fed is doing. People are undertaking. These sacrifices for the common good we need to make them halted extent we have the ability to make them whole. We should be doing that as a society. They didn't cause this their businesses closed because of anything they did wrong. They didn't lose their job because of anything did wrong. This is what the great fiscal power of the United States is. Four is to protect these people as best. We can from The hardships they're facing a good phrase right. The great fiscal power of the United States. I kinda like that.