https://www.npr.org/sections/coronavirus-live-updates/2020/11/20/937009220/fate-of-pandemic-funds-sparks-unusual-dispute-between-treasury-and-federal-reser
The Fed decides to wind down Covid stimulus programs at the end of the year. Emergency funds are rarely used, but this year, these funds have been vital since March to help with the economy during the pandemic. The Treasury Department has convinced Jerome Powell that the funds are not needed anymore because "they have done their job." These funds include small-medium business loans and extensions on rents. This is all against what the Fed wants to do as they desire to extend the use of these funds. Some business owners have begged for more help as states are starting to shut down again. Powell also hopes that with Biden coming into office, the funds will begin being used again. In the end, however, the Fed must follow the Treasury's requests to slow down the spending.
How do you think this will change the recovery of the economy?
I could see a lot more small and medium sized businesses closing down if these funds are removed. With Biden coming into office, it is a great point to make that the funds might begin being used again. On the other hand, Biden might implement policies where the funds are not necessary anymore.
ReplyDeleteI would agree with Lucas on this. It is possible that the termination of pandemic program could send the US into even more of a spiral. If there would be no further action until the Biden Administration enters the White House, some sources such as NPR say that it will be too late to act. Many people are still struggling and hundreds of thousands of people have left the work force, the economy has taken a massive toll this year.
ReplyDeleteI hope that small land medium sized businesses have adapted to be able to handle a second wave of lockdowns. I think that it is unlikely that we do not see any more forms of stimulus for businesses.
ReplyDeletethis will certainly lead to a slow down in or recovery and will affect regular citizens and small business owners the most
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