Make It Rain
Bloomberg Businessweek|April 20, 2020
Jay Powell’s Fed is reaching beyond Wall Street with lending programs for companies big and small
Peter Coy, with Craig Torres
Make It Rain

Federal Reserve Chair Jerome Powell and his colleagues had a hard decision to make as the coronavirus epidemic worsened in February and March. If they stuck to the standard policy of buying only highly rated bonds, they would likely be accused of favoring Wall Street over Main Street—the traditional rap on the Fed. If they got creative, they could help more sectors of the economy but they would almost certainly be accused of overreaching, picking winners and losers, rescuing the unworthy, and risking losses that would ultimately be borne by taxpayers.

They decided to get creative. More creative, in fact, than any Fed leaders since the birth of the central bank in 1913. They not only relaunched the special lending programs built for the 2008-09 financial crisis, but they invented entirely new ones to rescue both big and small businesses. Powell’s immediate predecessor, Janet Yellen, called the actions “rapid and enormous.” Ben Bernanke, who set the previous record for Fed activism, commended Powell while calling some of the newest measures “important and difficult.”

The Fed’s fire hose of lending hasn’t prevented a recession, but it’s protecting the financial system from seizing up. Fear was so rampant in the financial markets in early March that even some normally in-demand Treasury securities—such as certain slightly older issues of 10-year government notes—fell out of favor.

Diese Geschichte stammt aus der April 20, 2020-Ausgabe von Bloomberg Businessweek.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der April 20, 2020-Ausgabe von Bloomberg Businessweek.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS BLOOMBERG BUSINESSWEEKAlle anzeigen
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 Minuten  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 Minuten  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 Minuten  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 Minuten  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ Minuten  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ Minuten  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 Minuten  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 Minuten  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 Minuten  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 Minuten  |
March 20 - 27, 2023