Checks Would Go Out To Americans In Two Waves Under Trump’s $1T Stimulus Proposal

The New York Times: Trump And Coronavirus: President Seeks $500 Billion In Payments For Americans
The Trump administration on Wednesday asked Congress for $500 billion to cover two separate waves of direct payments to American taxpayers in the next several weeks and another $300 billion to help small businesses meet payroll, outlining a sweeping $1 trillion economic stabilization package to respond to the coronavirus pandemic. The package, outlined in a document obtained by The New York Times, also calls for $50 billion for secured loans for the airline industry and another $150 billion for secured loans or loan guarantees for other sectors of the economy that have been devastated by the global economic shutdown as the virus spreads. (Cochrane and Fandos, 3/18)

The Associated Press: Trump's $1T Plan To Stabilize Economy Hit By Virus
Details on Trump’s economic rescue plan remain sparse — and it’s sure to grow with lawmaker add-ons — but its centerpiece is to dedicate $500 billion to start issuing direct payments to Americans by early next month. It would also funnel cash to businesses to help keep workers on payroll as widespread sectors of the $21 trillion U.S. economy all but shut down. In a memorandum, the Treasury Department proposed two $250 billion cash infusions to individuals: a first set of checks issued starting April 6, with a second wave in mid-May. The amounts would depend on income and family size. (Taylor and Mascaro, 3/19)

The Washington Post: Negotiations Intensify On Capitol Hill Over Massive Stimulus Legislation As Coronavirus Fallout Worsens
The White House is vetting these proposals with Senate GOP leaders before engaging more fully with Democrats, so the package is certain to evolve in coming days. Democrats, meanwhile, are eyeing their own priorities, largely aiming to shore up safety-net programs and the public health infrastructure, as well as send money directly to American taxpayers, while shunning corporate bailouts. Rep. Maxine Waters (D-Calif.) proposed on Wednesday having the Federal Reserve send $2,000 to every American adult and $1,000 to every American child until the crisis ends. (Werner, Stein and DeBonis, 3/18)

The Associated Press: Federal Reserve Launches 3rd Emergency Lending Program
The Federal Reserve announced late Wednesday that it will establish an emergency lending facility to help unclog a short-term credit market that has been disrupted by the viral outbreak. The Fed said it will lend money to banks that purchase financial assets from money market mutual funds, including short-term IOUs known as commercial paper. By facilitating the purchase of commercial paper, which is issued by large businesses and banks, the Fed hopes to spur more lending to firms that are seeking to raise cash as their revenues plummet amid the spread of the coronavirus. (Rugaber, 3/19)

The New York Times: Fed Faces Pressure To Do More As Virus Demands A Response
Over a frenetic two weeks, as the coronavirus has upended American capitalism and changed every aspect of life, the Federal Reserve has taken drastic steps to keep money flowing throughout the financial system. It has cut interest rates to near-zero, introduced a huge bond-buying program, revamped a crisis-era emergency lending program to calm the market big businesses use to raise cash, and enacted major backstops in an attempt to restore order to Wall Street’s volatile inner workings. (Smialek and Tankersley, 3/19)

The Washington Post: Federal Reserve Announces It Will Backstop The U.S. Money Market, Its 7th Major Emergency Action This Week
By establishing the Money Market Mutual Fund Liquidity Facility, the Fed is reprising another weapon from its 2008 arsenal. During the financial crisis of a dozen years ago, there was great concern that these money market mutual funds would not be able to make investors whole. In recent weeks, investors have been rushing to pull money out of the market, leading to concerns that a wide range of assets could face a run. The Fed has now launched seven emergency actions this week, with the money market liquidity facility announcement occurring at 11:30 p.m. (Long, 3/18)

CNN: Trump Loses His Touch With The Markets As Coronavirus Threat Grows 
The stark news came in shortly after noon on Wednesday: The Dow Jones Industrial Average dropped almost 10%, wiping out all the gains logged since President Donald Trump took office, thanks to investors craving more government spending to offset the impact from the coronavirus. As the freefall commenced, the President was at the White House podium, leading the now-daily coronavirus task force briefing on the latest measures being taken to mitigate the public health crisis. (Salama and Harwood, 3/19)

The Associated Press: Stock Markets Subdued After More Central Bank Support
Stock markets were largely subdued Thursday after days of massive volatility, as investors digested new financial support measures, including the European Central Bank’s promise to funnel $817 billion into financial markets. Market sentiment appeared fragile as investors rushed to convert holdings to cash, bracing for a prolonged coronavirus-induced recession. ... The futures for the Dow were down 1.5% and those for the S&P 500 were 1.4% lower. (Kurtenbach, 3/19)

The Wall Street Journal: U.S. Stock Futures Falter Despite Central Banks’ Action
U.S. stock futures dropped on Thursday, deepening the market turmoil even as the Federal Reserve and European Central Bank introduced fresh measures to protect the global economy from the impact of the coronavirus pandemic. Futures tied to the S&P 500 index wavered between gains and losses before edging down over 1%. A closely watched measure of turbulence in U.S. stocks, the Cboe Volatility Index, climbed close to historic highs. (Ostroff and Yu, 3/19)

CNBC: NYSE To Temporarily Close Floor, Move To Electronic Trading After Positive Coronavirus Tests
The New York Stock Exchange said Wednesday it will temporarily close its historic trading floor and move fully to electronic trading after two people tested positive for coronavirus infection at screenings it had set up this week. All-electronic trading will begin on March 23 at the open, the exchange said. The facilities to be closed are the NYSE equities trading floor and NYSE American Options trading floor in New York, and NYSE Arca Options trading floor in San Francisco. (Li, 3/18)

The Wall Street Journal: Coronavirus Pandemic To Test Limits Of How Much Debt U.S. Can Bear
The coronavirus pandemic is about to test the bounds of how much debt the U.S. government can bear. Even before the crisis hit, the U.S. was on track to increase its budget deficit to nearly $1 trillion in the fiscal year that ends Sept. 30. It was already up to $625 billion in the five months since the current fiscal year began Oct. 1. (Hilsenrath, 3/18)

The New York Times: Racing To Head Off Evictions And Foreclosures
The financial shock from the coronavirus pandemic threatens the housing security of millions of Americans, prompting federal, state and local officials — and even judges and the police — to move quickly to ward off foreclosures and evictions. On Wednesday, the federal agency overseeing Fannie Mae and Freddie Mac, the giant government-run finance firms that back the mortgages of 28 million homeowners, ordered a suspension of foreclosures and foreclosure-related evictions for at least two months. The move is meant to keep people in their homes and avoid a housing squeeze like the one that followed the mortgage-fueled financial crisis of 2008. (Dougherty, Goldstein and Flitter, 3/18)

The New York Times: A Taxonomy Of Bailouts: Comparing The Coronavirus Rescues To Rescues Past
A week ago, the big question in Washington was: Which industries will be bailed out of their losses because of coronavirus? This week, the question is: Which industries won’t? With stunning speed, it has become clear that many mainstays of American industry are facing potentially existential risks from their looming financial losses, and that Congress and the Trump administration are determined to prevent widespread bankruptcies and corporate collapse. (Irwin, 3/19)