Question

Do you believe the Federal Government's health policies and economic policies have been effective to date in dealing with the Covid-19 Pandemic?

Answer 1

US$ 8.3 billion Coronavirus Preparedness and Response Supplemental Appropriations Act and US$ 104 billion Family First Coronavirus Response Act, which together provide 0.5 per cent of GDP for health care, sick leave, small business loans and foreign assistance. Agreement has been reached on a US$ 2 trillion (around 10 per cent GDP) that Congress is supposed to approve in the days ahead. The Coronavirus Aid, Relief and Economic Protection Act provides for payments to families, expanded unemployment benefits, food assistance, incentives for businesses to retain workers on payroll, loans and corporate grants, hospital support and health care infrastructure;

Federal funds down to 0-0.25bp by 150bp. Purchase of securities from Treasury and Agency in the sum as needed. Repository expanded overnight and on word. Lowered discount window borrowing rates. Reduced existing swap-line costs with major central banks and increased the duration of FX operations; expanded US dollar swap lines to include more central banks. The Federal Reserve has implemented credit flow-support services, in some cases supported by Exchange Stabilization Fund capital.

The facilities are: I Commercial Paper Funding Facility to promote the issuance of commercial paper by companies and municipal issuers; (ii) Primary Dealer Credit Facility to provide financing to primary dealers collateralized by a wide range of investment grade securities ; (iii) Money Market Mutual Fund Liquidity Facility to provide loans to depository institutions to buy securities from prime money market funds (covering highly rated securities backed by commercial paper and municipal debt); (iv) Main Market Corporate Credit Facility to purchase new bonds and loans from companies; (v) Secondary Market Corporate Credit Facility to provide collateral for those already issued;

Regulatory authorities have indicated their support for banks that use their capital and liquidity reserves to lend and perform other activities to benefit households and businesses. For those affected by Covid-19, Fannie Mae / Freddie Mac suggested a 60-day suspension of foreclosures / expulsions and a pledge to reduce / suspend mortgage payments for up to 12 months.