Wall Street Doubts Fed’s $600 Billion Lending Plan Can Succeed

In this article The Federal Reserve is about to launch a $600 billion gambit to save swaths of U.S. businesses and tens of millions of jobs threatened by the coronavirus crisis. Wall Street is far from confident the Fed can pull it off. At issue is the Main Street Lending Program, a high-stakes juggling act […]

Powell: Fed May Take Additional Steps But Not Considering Negative Rates

Citing the unprecedented speed and scope of the coronavirus-induced economic downturn, Federal Reserve Chair Jerome Powell said Wednesday the central bank may take additional steps to avoid an extended period of low productivity growth and stagnant incomes. “At the Fed, we will continue to use our tools to their fullest until the crisis has passed […]

Disagreeing With Fed Chair, Trump Again Touts Negative Interest Rates

WASHINGTON, May 13 (Reuters) ― President Donald Trump on Wednesday said he still strongly believes the Federal Reserve should have negative interest rates, but gave a modicum of approval to Fed Chair Jerome Powell who said earlier in the day the central bank would not lower rates beyond zero. Trump said Powell, whom he frequently […]

Traders Are Baffled Why the Futures Market Is Pricing in Negative Rates

The futures market is again pricing in the possibility of the U.S. joining Europe and Japan with negative rates, catching money managers, traders and analysts off guard. Expectations for the timing of below-zero rates — as shown by contracts on the Fed funds rate — shifted to the middle of 2021 after earlier indicating this […]

Fed Faces Risky, Inflationary Divorce from Treasury Post Covid

In this article Breaking up is hard to do. The coronavirus has forged a once unlikely alliance between Donald Trump’s Treasury Department and the central bank he often derided. The close embrace is resurfacing concerns about the Fed’s independence in the long run. By openly urging Trump and Congress this week to spend more money […]

Powell Expects ‘Robust’ Economic Recovery When Coronavirus Is Contained

Despite the havoc being wreaked on the world by the coronavirus outbreak, Federal Reserve Chair Jerome Powell said Thursday he expects a “robust” economic recovery once the spread of the virus is under control. Powell noted in an online speech sponsored by the Brookings Institution that the Fed will continue to do all it can […]

Fed’s Anti-Virus Lending Firepower Could Reach $4.5 Trillion

The Federal Reserve could now have as much as $4.5 trillion to keep credit flowing and make direct loans to U.S. businesses through the massive coronavirus stimulus bill being considered by U.S. lawmakers. Balance Sheet The bipartisan agreement, which still needs to be passed by the Senate and House and signed into law by President […]

Fed Could Provide Massive Support for Business, States in Bill

Congress could hand the U.S. Treasury at least $425 billion to backstop potentially much larger support by the Federal Reserve for business and municipal borrowers as part of an economic aid package being hammered out by the Trump administration and Congressional leaders. The latest draft of the Republican-written bill, which GOP lawmakers are trying to […]

Fed Restarts Commercial Paper Facility to Ease Market Strain

The Federal Reserve will restart a financial crisis-era program to help U.S. companies borrow through the commercial paper market after it came under “considerable strain” due to the coronavirus pandemic. The central bank is using emergency authorities to establish the Commercial Paper Funding Facility with the approval of the Treasury secretary, according to a Fed […]

Powell’s Fed Seeks to Limit Pain of Unavoidable Economic Slump

Federal Reserve Chairman Jerome Powell recognizes that he can’t prevent what increasingly looks like a sudden stop of the U.S. economy, but he’s still hoping to avoid a freezing up of financial markets that makes the pain even worse. In a roughly 40-minute conference call with reporters on Sunday after the Fed slashed interest rates […]