Fed Cuts Rates to Zero, Trump Proposes Stimulus Package over $1Trillion
The Federal Reserve on Sunday slashed interest rates to zero and said it would buy $500 billion in US government bonds.
Rates will remain at zero until the central bank is “confident that the economy has weathered recent events.”
The unprecedented rate cut follows stock market plunges not seen since Black Monday. The Dow plummeted 2,250 at open this Monday, triggering a circuit breaker that suspended trading for 15 minutes.
The breaker, which goes into effect if the S&P 500 drops 7%, was triggered three times in the past week amid fears that the coronavirus will disrupt supply chains and push the economy into a recession.
“I want to congratulate the Federal Reserve,” said President Trump to reporters. “I think people in the market should be very thrilled.”
The Administration is also pursuing a stimulus package over $1 Trillion that would build on the $8.3 billion in emergency funds already approved by Congress. The new package is expected to include support for airlines and cash for working Americans. It might also include direct payments to American workers.
“We’re looking at sending checks to Americans immediately,” said Treasury Secretary Steven Mnuchin. “What we’ve heard from hardworking Americans is many companies have shut down, whether it’s bars or restaurants…Americans need cash now and the president wants to get cash now. And I mean now in the next two weeks.”
Individual checks could be as high as $1,000.
Later this week, the Senate is expected to vote on a separate package to expand paid leave benefits, boost unemployment insurance, and make COVID-19 testing more affordable. The bill has already been approved by the House.
Author’s Note: Trump has dramatically changed his stance on the coronavirus, likely to save face come election time. If he doesn’t support measures to help working-class Americans survive the virus, voters will crucify him in November.
The author is full of bull crap when he says “Trump has drastically change his stance on Corona Virus”. Look at the comparison between his response and Obama’s response during H1N1 Swine Flu (also a Corona Virus) Trump almost immediately placed a travel ban from China. Compare the numbers so far. Trump is doing a great job. Tell the truth author (clearly an ideologue.
Fooey on you Chet. We’re all on board with Alice! She’s got the goods.
The Federal Reserve is nothing more than the United States branch of the World Bank which is controlled by the most wicked of families the Rothschilds, every action taken by those who run the Fed. is as corrupt as imaginable, a serious Recession is on the horizon, you cannot lower the interest rate to zero and expect that there will not be serious economical repercussions.
CMV: Finally, I am able to agree with most of your message, delivered in a long run-on sentence.
The Fed is going to buy 500 BN of US bonds, so we will only have to owe them face value plus interest. Isn’t that special.
At least this time, the Treasury is bailing out the victims of the situation, instead of the perpetrators.
Should had let trump close boaders in Jan fire pelosi for waste time with impeachment
1,200 people died in this country with the H1N1 Swine Flu under the brown clown before he done anything at all about it, so YES Trump is doing a great job trying to handle this problem that was caused by China that hates Trump as much as the dem party.
People needs cure vaccines food better masks
Handsanitzer Lysol wipes food in super market more supplies
Cure.healthcare