News Roundups

Fed deliberates on asset purchases, airlines cut jobs, and more

Daily news headlines about the stimulus and recovery from May 29, 2020.

Federal Reserve Ramps Up Deliberations on Asset Purchases, Rate Guidance

Federal Reserve officials head into their next policy meeting deliberating how to assist an economy in a deeper hole than it faced after the 2008 financial crisis at a time when their tools might have less zip.

They are likely to debate how to adjust their plans to purchase Treasury and mortgage assets and how to make more concrete their assurances to keep interest rates near zero for some time.

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Why it might be a gamble for companies to borrow directly from the Fed

All publicity may not be good publicity, even for companies thrust into the spotlight by the coronavirus pandemic.

When the Federal Reserve in March vowed to aim a more than $2 trillion bazooka at U.S. credit markets to keep borrowers flush during recent COVID-19 lockdowns, the backstop worked even before much money was spent.

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Elizabeth Warren accuses airlines and the Treasury Department of violating bailout terms as major airlines cut workers' take-home pay

Airlines have cut thousands of employees' work hours in recent weeks, despite a provision of the federal coronavirus bailout prohibiting layoffs or furloughs before September 30.

Now, lawmakers are questioning those airlines and the US Treasury Department, which is administering the bailouts, saying they're effectively allowing furloughs in all but name, and accusing the Treasury of violating the spirit of the bipartisan relief package that passed in March.

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How private jet owners got a subsidy from coronavirus relief funds

A California aviation management company is sharing the benefits of a taxpayer-financed loan with its private jet-owning clients after it won the loan through the federal Paycheck Protection Program, according to three clients and a copy of a letter announcing the plan.

Congress and President Donald Trump enacted the loan program, known as PPP, to prevent workers at small businesses from being laid off during the coronavirus crisis. The company, Clay Lacy Aviation, will be able to keep pilots and flight attendants employed with the money it received.

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Opinion: Time to spark a COVID-19-like climate response

The scale of government spending to tackle COVID-19, paired with public support, needs to extend to an even deadlier crisis colliding with this pandemic — the climate crisis.

Being one of the biggest contributors to global carbon dioxide emissions, and among the most hurt by climate damages, especially along the country’s West and East coasts, the United States is pivotal in reversing the climate direction. With greater acceptance of fiscal spending to tackle catastrophes, the U.S. — even if far-fetched in the current political environment — and the other leading emitters should spark a global green stimulus.    

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