Tuesday, March 17, 2020

"White House Unveils $850 Billion Economic Rescue Package, "Sending Checks To Every Household" A Good Idea, Dudley Says"

That's former New York Fed head Dudley, not Do-Right of the Mounties.
Following up on Dan's Back: "The case for massive corona-stimulus".

From ZeroHedge:
Update (0830ET): Former NY Fed President Bill Dudley appeared on Bloomberg TV Tuesday morning to say that if the administration really wants to restore confidence, it should reconsider its insistence on a payroll tax holiday, and instead start firing off checks to every US household.
"I think one good idea is to actually send out checks to households" to provide support during the coronavirus outbreak, Dudley said, who added that while the Fed is doing "everything it can" to support the availability of credit, the central bank is virtually powerless to blunt the initial demand shock: Only fiscal stimulus can accomplish that.

"If that situation continues to deteriorate then I think we’ll start to see the kind of special emergency interventions that we saw in 2008."

His comments come amid rumors that the Fed is about to intervene in the Commercial Paper market....MORE