Federal Reserve Pulls Out All The Stops To Try To Bolster Economy
But calls for the Fed to lend to all corners of the economy are striking given a move by Congress just 10 years ago to restrict its emergency lending authority after the last economic meltdown. Meanwhile, governors plead with the federal government and Congress for financial help as their unemployment claims skyrocket.
Politico:
Fed Breaks The Bank In Bid To Rescue Economy
The Federal Reserve has been thrust into the lead role of saving the U.S. economy from the coronavirus pandemic, taking on the extraordinary task of rescuing households, businesses and local governments as Washington lawmakers have spent weeks debating how to come to grips with the crisis. In just over a week, the Fed has slashed its main borrowing rate to zero, pledged unlimited purchases of U.S. government bonds, announced plans to back state and local governments, and even promised to buy debt from large corporations. It has said it will set up a program to lend to small businesses and eased pressure on rates for student loans, auto loans and credit card debt. (Guida, 3/24)
Politico:
DeVos Halts Collection Of Defaulted Federal Student Loans
The Trump administration has stopped seizing the wages, tax refunds and Social Security benefits of people who are in default on their federal student loans, an administration official confirmed to POLITICO on Tuesday. The Education Department is putting a stop to collecting on defaulted federal student loans amid the coronavirus pandemic and ordering private collection firms to stop pursuing borrowers “until further notice," according to the official and a memo sent to the companies. The department plans to make the policy retroactive to March 13, the day President Donald Trump declared a national emergency, the official said. (Stratford, 3/24)
Politico:
Governors Beg For Cash As Unemployment Claims Crush States
Governors are pleading for more financial help from Congress as unemployment claims surge to near-unprecedented levels this month, leaving states incapable of covering the mountainous costs. The full problem won’t become clear until the Department of Labor releases national unemployment data on Thursday. But eye-popping numbers have already trickled out as state after state has imposed sweeping orders shutting down non-essential businesses. (Landergan and Murphy, 3/24)
Politico:
Trump Hasn’t Yet Released Disaster Unemployment Funds
The three states that President Donald Trump has formally declared coronavirus disaster areas have not received the disaster unemployment assistance that they expected to follow that designation. New York, California and Washington state all requested access to several aid programs provided under a disaster declaration, including disaster unemployment assistance. (Rainey, 3/24)
Los Angeles Times:
Who Qualifies For Coronavirus Paid Sick Leave Under New Law?
The federal government’s emergency coronavirus relief law includes paid sick leave benefits for American employees at small to midsize firms who have to take time off because of the spreading virus. But the law signed by President Trump last week includes exceptions that some analysts said could exclude nearly 20 million private sector workers, including an exemption for small businesses that’s causing confusion as to how it will be implemented. Congressional Democrats have introduced additional legislation to close those gaps and make paid sick leave available to all U.S. workers. (Peltz, 3/24)
The New York Times:
Drivers Say Uber And Lyft Are Blocking Unemployment Pay
In a typical week, Jerome Gage, a Lyft driver in Los Angeles, makes $900 to $1,000 before expenses during roughly 50 hours on the road. This week, with most of the state holed up and demand for rides evaporating, he expects to work even longer to make far less than half that amount. Given the option, Mr. Gage said, he would stop wasting his time and risking his health and file for unemployment benefits. But unlike workers employed by restaurants, hotels and retail establishments, gig workers like Uber and Lyft drivers typically have not been able to collect unemployment benefits or take paid sick leave. (Scheiber, 3/24)
San Francisco Chronicle:
SF Supervisors To State: Enforce AB5 To Protect Gig Workers From Virus
Some San Francisco supervisors are calling on government officials to quickly reclassify Uber and Lyft drivers and other gig workers as employees under AB5, California’s new law that makes it harder for companies to claim that workers are independent contractors. (Said, 3/24)
