WASHINGTON (Reuters) - The coronavirus economic relief bill being finalized by the U.S. Congress will include a one-time $3,000 payment for families and allow the Federal Reserve to leverage up to $4 trillion of liquidity to support the nation’s economy, U.S. Treasury Secretary Steven Mnuchin said on Sunday. Mnuchin, speaking on the “Fox News Sunday” television program, said the additional liquidity measures would allow the U.S. central bank to help a broad base of businesses to get through next 90 to 120 days. Trump administration officials hoped to finalize the legislation on Sunday and see a vote on Monday, Mnuchin said, adding that further steps could be taken if the crisis did not abate in 10 to 12 weeks. Mnuchin said the U.S. economy would clearly take a hit from the health crisis, but should rebound once the new coronavirus has been contained. “We need to get the money into the economy now. If we do that, we think we can stabilize the economy,” he said. Nearly one in four Americans, or 80 million people, were under orders to close up shop and stay home as New York, California, Illinois, Connecticut and New Jersey instituted statewide lockdowns to try to contain the rapid spread of the highly contagious respiratory illness. Mnuchin downplayed a question about a possible recession, calling it a “technical question” that was not “terribly relevant” in the current situation since the government was effectively shutting down large parts of the economy to slow the virus.” “When people focus on recessions, it’s normally because of a prolonged economic environment,” Mnuchin said. “This is a very unique situation that we’ve never had before. This is the government has self-imposed shutting down large parts of the economy. And as soon as we can get the medical situation under control, we’re going to reopen it.” Mnuchin declined to comment specifically about a Washington Post report that the Trump administration did not act on repeated warnings about the potential impact of the coronavirus from the U.S. intelligence community, but said no one expected the crisis to escalate as quickly as it had. “I don’t think that anybody should second guess the government’s actions,” Mnuchin said. “This has been moving very quickly and I think we’ve responded appropriately.” Many critics have said the administration has been slow in both its preparation and response to the crisis as President Donald Trump for weeks played down the situation before changing his tone more recently. https://uk.reuters.com/article/us-h...llion-liquidity-for-fed-mnuchin-idUKKBN2190LL
I would change the title of this thread to read : How will Markets react to a Coronavirus aid bill which includes $3,000 for families and $4 trillion liquidity for the Fed? ET as we know is for traders.
Nighthawk is posting economic news which is part of ET forum. Lots of traders base their decision making on new information. Good work Night! (y)
Freeeeeeeee money once again..... absolutely no such thing as free markets as the fed just prints trillions and trillions and trillions of dollars. Where are the free markets? Yep non existent because the fed always comes and prints more money especially when they need to bailout billion dollar fucking companies that didnt put anything away for an emergency. Just keep printing that money to keep the economy and stock market propped up. If they didnt prop it up back in 2009 the markets would have been 70% lower from where they were at their highs and guess what this waterfall collapse would have never ever taken place....only reason why we saw trillions erased from the economy was because of their last pump job. Now we go at it again all.over again. Free trillions for everyone
The next collapse is the credit crisis of the USA, but use this time now to borrow at 0% and retire the expensive debt. Maybe it would help a bit.
Lol, rally? Dow is 400+ points down as we speak, referring to IG markets weekend prices. Sp500 was at 2900 when FED aggressively cut rates to zero. Stimulus right? Look where we are now.