The federal government is racing to ease the pain facing the U.S. economy as the coronavirus pandemic makes its swift pivot from public health crisis to financial catastrophe.
The damage from COVID-19, the disease caused by the new virus, is unlike anything in modern times. Economists have warned the fallout could be similar to that from the 2008 recession, the worst downturn that many Americans can remember.
The reasons are stark. At least 80 million Americans are under virtual lockdown, according to a NBC News tally. California and New York, economic engines and the two most populous U.S. states, have essentially shut down. It is not clear yet when the crisis will be over.
Unemployment numbers are expected to skyrocket. Jobless claims spiked to 281,000 in data posted last week, the highest number since September 2017. Next week’s numbers are estimated to be in the millions.
Governments at the local, state and federal level have taken action to ease the financial burden on Americans, with all 50 states declaring emergencies. But measures taken so far pale in comparison to what economists say will be required to stave off the crisis’s worst consequences.
Congress continues to debate a possible stimulus bill that could reach into the trillions, after it was unable to pass a key procedural vote Sunday evening over objections from Democrats that it benefited corporations more than workers.
Below is a list of what the federal government has done so far, counting actions taken by Congress and the executive branch, including the Federal Reserve, which operates independently from political officials. CNBC will continue to update this list as the crisis continues.
March 6: Trump signs $8.3 billion emergency spending package
The first major legislation intended to address COVID-19 was a financial drop in a bucket.
President Donald Trump signed the $8 billion emergency measure on the same day that worldwide cases passed 100,000, in early March. It provided funding to authorities already fighting to contain the outbreak and allocated $3 billion for vaccine research.
Support for the bill was nearly universal. Only three lawmakers voted against the bill: Reps. Ken Buck, R-Colo., and Andy Biggs, R-Ariz., and Sen. Rand Paul, R-Ky.
March 12: Fed says it will pump more than $1 trillion into financial system
The Federal Reserve announced it would inject up to $1.5 trillion into the financial system in an effort to calm the market. The move came amid liquidity concerns and initially sent markets higher, though some observers warned it would not be enough.
March 13: Trump gives people with student loans a break
Trump pledged some reprieve to student loan borrowers, saying that all interest on federal student loans would be waived for the duration of the coronavirus emergency. A week after Trump’s promise, though, borrowers said that interest was still being charged. A spokesman for the Department of Education said interest added after Trump’s announcement will be eliminated retroactively.
March 13: Trump declares national emergency
Trump originally resisted declaring a national emergency over coronavirus, fearing the move would spook financial markets. But when he did so, the major indexes rallied, posting their largest single-day gain since October 2008.
The move freed up to $50 billion in financial resources to assist Americans affected by the outbreak.
Health and Human Services Secretary Alex Azar had declared a nationwide public health emergency, a step short of a national emergency, over the coronavirus in January.
March 15: Fed cuts rates to zero, launches $700 billion quantitative easing program
The Fed’s first dramatic action, reminiscent of the 2008 financial crisis, came on a Sunday evening: The central bank cut rates to nearly zero and announced a $700 billion quantitative easing program.
The Fed said its purchases would include $500 billion of Treasurys and $200 billion of agency-backed mortgage securities. The central bank later said it would also buy municipal bonds.
Chairman Jerome Powell said at the time that the near-zero benchmark interest rate would remain “until we’re confident that the economy has weathered recent events and is on track to achieve our maximum employment and price stability goals.”
March 17: Fed takes new steps to keep money flowing
The central bank took big steps to keep money flowing in the U.S. economy: It established a Primary Dealer Credit Facility, which provides short-term funding to big financial firms, and a Commercial Paper Funding Facility to purchase corporate paper from issuers.
The Primary Dealer Credit Facility targets the nation’s 24 largest institutions that buy government securities directly, while the latter is geared toward supporting the flow of credit to households and businesses.The Commercial Paper Funding Facility could total $1 trillion, Treasury Secretary Steven Mnuchin said.
March 18: Trump signs coronavirus relief plan to expand paid leave
The second coronavirus-related aid package called for more than 10 times as much funding as the first.
The $100 billion bill included provisions for emergency paid leave for workers at big businesses, expanded unemployment insurance and free testing. It passed with overwhelming support, 90-8, with two Republican senators missing the vote because they were self-quarantined. The House approved the measure days beforehand by a vote of 363-40-1.
Even as lawmakers were voting on the legislation, talk was swirling of a far more ambitious aid package, somewhere in the realm of $1 trillion. Senate Majority Leader Mitch McConnell, R-Ky., said he would not adjourn the Senate until it passed something “far bolder.”
March 20: Trump invokes the Defense Production Act
After days of mounting pressure, Trump said that he would put the Korean War-era Defense Production Act “into gear” to mobilize private business resources to fight coronavirus.
The act enables the government to compel businesses to manufacture supplies needed during a crisis, such as medical masks, ventilators, gloves and testing swabs.
Even days after Trump said he would put the DPA into gear, though, he signaled he would prefer to have companies manufacture supplies voluntarily. At a briefing on March 22, Trump said “we’re a country not based on nationalizing our business. Call a person over in Venezuela.”
“We’re getting what we need without putting the heavy hand of government down,” White House advisor Peter Navarro said at the briefing.
March 20: Education Department says borrowers can pause student loan payments, though they already could
A week after Trump said that interest on federal student loans would be waived, the Department of Education said that borrowers could put their monthly payments on pause for at least 60 days during the crisis. One hiccup: They could already do so.
Most borrowers were already entitled to request that their debt be put into temporary postponements known as forbearances and deferments. Mark Kantrowitz, a higher education expert, told CNBC that the Education Department’s announcement didn’t “really move the needle much.”
March 23: Fed pledges asset purchases with no limit
The central bank made significant adjustments to its earlier quantitative easing announcement, removing limits on its asset purchases.
Rather than committing to a specific amount of purchases, the Fed said it will buy “in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”
The Fed also said that it would add corporate bonds to its asset purchases. The move initially sent markets higher, but the major indexes soon fell again as investors waited on action from Congress on a major stimulus bill.
Cabinet slashes budgets to pay for 6 new ministries, including ‘alternate PM’ – The Times of Israel
The cabinet on Sunday approved widespread fiscal reforms that will cut the budgets of most ministries in order to fund the establishment of six new ministries, including the office of the “alternate prime minister,” in a series of controversial decisions.
A unity coalition deal between Likud’s Benjamin Netanyahu and Blue and White’s Benny Gantz ended over a year of political deadlock when the most minister-rich government in Israel’s history was sworn in earlier this month. New ministerial positions were created to accommodate the cabinet’s 33 ministers, who number over a quarter of the Knesset’s 120 lawmakers.
The price tag for the overhead costs of the new government has been estimated as high as a billion shekels ($285 million) over its three-year span. There have been widespread accusations that the government is overlarge and costly at a time when the economy is being ravaged by the COVID-19 pandemic.
Among the new offices created Sunday was the Alternate Prime Minister’s Office, which will be held by Defense Minister Gantz for 18 months and then be transferred to Netanyahu as part of a power-sharing deal designed to allow him to keep the prime ministerial title even after vacating the post. Unlike other ministers, a prime minister can remain in his post even after he is indicted on criminal charges.
Other offices are Ze’ev Elkin’s Water Resources and Higher Education ministries; Orly Levy-Abekasis’s Ministry of Community Empowerment; David Amsalem’s Cyber Ministry; and Tzipi Hotovely and Tzachi Hanegbi’s Settlements Ministry.
Gantz — who is currently defense minister, in addition to the new post of alternate premier — is set to take over as prime minister in 18 months under the coalition deal, at which point Netanyahu will become alternate prime minister.
As the Alternate Prime Minister’s Office was approved, Netanyahu on Sunday denied reports that the alternate prime minister would also be granted an alternate prime minister’s residence. “It’s not true. It didn’t come up and it won’t,” he said.
In order to create the new posts, ministers approved a government decision that will see a 1.5% cut to the budgets of all government offices, specifically at the upper personnel level. The move will slash 300 posts from the various offices to free up some NIS 100 million ($28.5 million).
Foreign Minister Gabi Ashkenazi opposed the budget cuts to foreign service, whereupon the cuts to his ministry were reduced from NIS 11.5 million ($3.2 million) to NIS 4.8 million ($1.3 million), the Walla news site reported.
On the 22-item agenda, the cabinet was also voting on filling the Ministerial Committee for Legislation, led by Blue and White’s Avi Nissenkorn, and other ministerial panels; appointing directors general of the defense and economy ministries; and giving the green light to new Finance Minister Israel Katz’s program to encourage employment amid the pandemic.
In a Saturday night address, Katz presented his new Finance Ministry plan aimed at encouraging employers to take back employees placed on unpaid leave during the height of the pandemic in March. For every employee called back, places of business will receive a grant of NIS 7,500 ($2,141) starting on June 1, according to the plan. An additional grant of some NIS 3,500 ($1,000) will be handed out to employers for employees called back in May. Katz said some NIS 500 million ($142 million) have been allocated for businesses that would put employees back to work.
Economy Minister Amir Peretz opposed the treasury proposal during the meeting, arguing that it rewards employers who dropped their workers while harming those who kept their employees on the payroll even at a loss, according to the Globes business daily.
Katz retorted: “There is an alternate prime minister. There is no alternate finance minister. I am the finance minister and I will lead the implementation of the government decisions, which I proposed, and which were accepted by an overwhelming majority,” the Ynet news site reported.
Sunday’s cabinet meeting also saw Housing Minister Yaakov Litzman and Interior Minister Aryeh Deri receive building and planning powers that were previously under the treasury’s purview, while the Health Ministry was granted additional powers to combat the coronavirus.
The meeting on Sunday was held in the Foreign Ministry’s auditorium as the regular cabinet meeting rooms were not large enough to accommodate all the ministers while maintaining social distancing, according to reports.
Opposition chairman Yair Lapid issued a statement blasting the government after ministers approved funding for the newly formed offices created by the Gantz-Netanyahu coalition deal.
“The government handed half a billion shekels to itself today. Not for the self-employed, not for the unemployed, not for small businesses, but for itself,” said Lapid.
“For redundant offices like the Water Resources Ministry, the nonexistent Community Empowerment Ministry and for deputy ministers that no one needs. Detached lawmakers, we’ve had enough of you.”
Separately, last Wednesday, a bill allowing ministers to give up their positions as Knesset members in order to enable a different member of their party slate to take their spot in parliament passed its preliminary Knesset plenary reading. The so-called Norwegian Law — which still requires three more votes to become law — would allow any MK who is appointed to a cabinet post to resign temporarily from the Knesset, thereby permitting the next candidate on the party’s list to enter parliament in his or her stead.
The opposition has blasted the bill, and the coalition’s rush to pass it, as a way of pushing more people into sweetheart jobs on the taxpayers’ dime.
Tapper: Some of Trump’s allies think he’s not up to the task – CNN
In Days of Discord, President Trump Fans the Flames – The New York Times
WASHINGTON — With a nation on edge, ravaged by disease, hammered by economic collapse, divided over lockdowns and even face masks and now convulsed once again by race, President Trump’s first instinct has been to look for someone to fight.
Over the last week, America reeled from 100,000 pandemic deaths, 40 million people out of work and cities in flames over a brutal police killing of a subdued black man. But Mr. Trump was on the attack against China, the World Health Organization, Big Tech, former President Barack Obama, a cable television host and the mayor of a riot-torn city.
While other presidents seek to cool the situation in tinderbox moments like this, Mr. Trump plays with matches. He roars into any melee he finds, encouraging street uprisings against public health measures advanced by his own government, hurling made-up murder charges against a critic, accusing his predecessor of unspecified crimes, vowing to crack down on a social media company that angered him and then seemingly threatening to meet violence with violence in Minneapolis.
As several cities erupted in street protests after the killing of George Floyd, some of them resulting in clashes with the police, Mr. Trump made no appeal for calm. Instead in a series of tweets and comments to reporters on Saturday, he blamed the unrest on Democrats, called on “Liberal Governors and Mayors” to get “MUCH tougher” on the crowds, threatened to intervene with “the unlimited power of our Military” and even suggested his own supporters mount a counterdemonstration.
The turmoil came right to Mr. Trump’s doorstep for the second night in a row on Saturday as hundreds of people protesting Mr. Floyd’s death and the president’s response surged in streets near the White House. While most were peaceful, chanting “black lives matter” and “no peace, no justice,” some spray painted scatological advice for Mr. Trump, ignited small fires, set off firecrackers and threw bricks, bottles and fruit at Secret Service and United States Park Police officers, who responded with pepper spray.
The police cordoned off several blocks around the Executive Mansion as a phalanx of camouflage-wearing National Guard troops marched across nearby Lafayette Square. A man strode through the streets yelling, “Time for a revolution!” The image of the White House surrounded by police in helmets and riot gear behind plastic shields fueled the sense of a nation torn apart.
Mr. Trump praised the Secret Service for being “very cool” and “very professional” but assailed the Democratic mayor of Washington for not providing city police officers to help on Friday night, which she denied. While governors and mayors have urged restraint, Mr. Trump seemed more intent on taunting the protesters, bragging about the violence that would have met them had they tried to get onto White House grounds.
“Big crowd, professionally organized, but nobody came close to breaching the fence,” the president wrote on Twitter on Saturday morning. “If they had they would have been greeted with the most vicious dogs, and most ominous weapons, I have ever seen. That’s when people would have been really badly hurt, at least. Many Secret Service agents just waiting for action.”
His suggestion that his own supporters should come to the White House on Saturday foreshadowed the possibility of a clash outside his own doors. “Tonight, I understand, is MAGA NIGHT AT THE WHITE HOUSE???” he wrote on Twitter, using the acronym for his first campaign slogan, “Make America Great Again.”
Asked about the tweet later, he denied encouraging violence by his supporters. “They love African-American people,” he said. “They love black people. MAGA loves the black people.” By evening, however, Mr. Trump’s supporters were not in evidence among the crowds at the White House.
Mayor Muriel E. Bowser of Washington responded sharply on Saturday morning, saying her police department will protect anyone in Washington, including the president, and by Saturday evening her officers were out in force around the White House.
But she called the president a source of division. “While he hides behind his fence afraid/alone, I stand w/ people peacefully exercising their First Amendment Right after the murder of #GeorgeFloyd & hundreds of years of institutional racism,” she wrote. “There are no vicious dogs & ominous weapons. There is just a scared man. Afraid/alone …”
After his morning barrage, Mr. Trump tried to recalibrate later in the day, devoting the opening of a speech at the Kennedy Space Center following the SpaceX rocket launch to the unrest in the streets and clearly trying to temper his bellicose tone.
“I understand the pain that people are feeling,” he said. “We support the right of peaceful protesters and we hear their pleas. But what we are now seeing on the streets of our cities has nothing to do with justice or peace. The memory of George Floyd is being dishonored by rioters, looters and anarchists.”
The days of discord have put the president’s leadership style on vivid display. From the start of his ascension to power, Mr. Trump has presented himself as someone who seeks conflict, not conciliation, a fighter, not a peacemaker. That appeals to a substantial portion of the public that sees in him a president willing to take on an entrenched and entitled establishment.
But the confluence of perilous health, economic and now racial crises has tested his approach and left him struggling to find his footing just months before an election in which polls currently show him behind.
“The president seems more out-of-touch and detached from the difficult reality the country is living than ever before,” said Carlos Curbelo, a former Republican congressman from Florida who has been critical of Mr. Trump. “At a moment when America desperately needs healing, the president is focused on petty personal battles with his perceived adversaries.”
Such a moment would challenge any president, of course. It has been a year of national trauma that started out feeling like another 1998 with impeachment, then another 1918 with a killer pandemic combined with another 1929 given the shattering economic fallout. Now add to that another 1968, a year of deep social unrest.
It is fair to say that 2020 has turned out to be a year that has frayed the fabric of American society with an accumulation of anguish that has whipsawed the country and its people. But in some ways, Mr. Trump has become a totem for the nation’s polarization rather than a mender of it.
“I am daily thinking about why and how a society unravels and what we can do to stop the process,” said Timothy Naftali, a presidential historian at New York University. “The calamity these days is about more than Trump. He is just the malicious con man who lives to exploit our vulnerabilities.”
As the nation has confronted a coronavirus pandemic at the same time as the greatest economic catastrophe since the Great Depression, whatever unified resolve that existed at the beginning of the twin crises quickly evaporated into yet another cultural clash. And the president has made everything into just another partisan dispute rather than a source of consensus, from when and how to reopen to whether to wear a mask in public.
Mr. Trump led no national mourning as the death toll from the coronavirus passed 100,000 beyond lowering the flags at the White House, posting a single tweet and offering a passing comment on camera only when asked about it. Rather than seek agreement on the best and safest way to restore daily life, he threatened to “override” governors who prevented places of worship from resuming crowded services.
“Crisis leadership demands much more from the White House than irresponsible threats on social media,” said Meena Bose, director of the Peter S. Kalikow Center for the Study of the American Presidency at Hofstra University.
Mr. Trump’s initial response to the rioting in Minneapolis, where a police officer has been charged with murder after kneeling on Mr. Floyd’s neck for nearly nine minutes as he cried out that he could not breathe, underscored the president’s most instinctive response to national challenges. Threatening to send in troops, he wrote early Friday morning that “when the looting starts, the shooting starts.”
Only after a cascade of criticism did he try to walk it back, posting a new tweet 13 hours later, suggesting that all he had meant was that “looting leads to shooting” by people in the street.
“I don’t want this to happen, and that’s what the expression put out last night means,” he said, a reformulation that convinced few if any of his critics.
Even some of Mr. Trump’s usual allies were distressed at the original shooting tweet. Geraldo Rivera, the television and radio host who often spends time with Mr. Trump at the president’s Mar-a-Lago club in Florida, decried “the recklessness” of that message and called on the president “to self-censor himself.”
“Come on, what is this, sixth grade?” Mr. Rivera said on Fox News. “You don’t put gasoline on the fire. That’s not calming anybody.” He added: “All he does is diminish himself.”
But many of the president’s defenders rejected the idea that he had mishandled the crises, pressing the argument that Democrats and the news media were to blame for the turmoil in the streets, which spread from Minneapolis to New York, Atlanta, Washington, Louisville, Portland and other cities.
“Keep track of cities where hundreds of millions of dollars in property damage and serious injuries and death will take place,” Rudolph W. Giuliani, the former New York mayor who has served as Mr. Trump’s personal lawyer, wrote on Twitter on Friday night. “All Democrat dominated cities with criminal friendly policies. This is the future if you elect Democrats.”
Bernard B. Kerik, the former New York City police commissioner who was pardoned by Mr. Trump for tax fraud earlier this year, amplified the point on Twitter. “It should be no surprise that every one of these cities that the anarchist have taken over, are the same cities run by leftist Democrats with the highest violence, murder and poverty rates,” he wrote on Twitter. “They can’t handle their cities normally, so how are they going to deal with this?”
Mr. Trump, who this past week retweeted a video of a supporter saying that “the only good Democrat is a dead Democrat” (though the supporter insisted he meant that in a political sense), picked up the theme on Saturday.
With crowds visible from his upstairs windows, Mr. Trump reached for his phone and again assailed the “Democrat Mayor” of Minneapolis for not responding more vigorously and called on New York to unleash its police against crowds. “Let New York’s Finest be New York’s Finest,” he wrote. “There is nobody better, but they must be allowed to do their job!”
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