March 25, 2020
National Economic Council Director Larry Kudlow on Tuesday evening announced the total coronavirus relief package will come to around $6 trillion with $2 trillion in “direct assistance” to Main Street and “roughly $4 trillion in Federal Reserve lending power” for Wall Street.
— CBS News (@CBSNews) March 24, 2020
CNS News reports:
“So, the total package here comes to roughly $6 trillion: $2 trillion direct assistance, roughly $4 trillion in Federal Reserve lending power,” said Kudlow at a White House briefing.
“Again,” he said, “it’ll be the largest Main Street financial package in the history of the United States. Liquidity and cash for families, small business, individuals, unemployed to keep things going.”
“We’re headed for a rough period, but it’s only going to be weeks, we think,” said Kudlow. “Weeks and months. It’s not going to be years, that’s for sure. And hopefully pave the way for continued economic recovery after the crisis departs.”
In all of fiscal 2019, according to the Treasury, the federal government spent a total of $4,446,584,000,000. So, this $6,000,000,000,000 coronavirus package is $1,553,416,000,000–or about 35 percent more than all the spending the federal government did in the last fiscal year.
A few hours later, the Federal Deposit Insurance Corporation released a video telling the public to “forget the mattress” amidst the coronavirus pandemic and keep their money in an “FDIC-insured bank where it’s safe and sound.”
“The last thing you should be doing is pulling your money out of the banks now, thinking that it’s going to be safer someplace else,” FDIC Chairman Jelena McWilliams said. “You don’t want to be walking around with large wads of cash and you certainly don’t want to be hoarding cash in your mattress.”
“It didn’t pan out well for so many people,” she said, without citing any such cases.
Forget the mattress! Keeping large sums of cash at home is risky. The best place to protect your money is in an FDIC-insured bank where it’s safe and sound. Learn how the FDIC safeguards your #money at https://t.co/O2cb1bTUJs pic.twitter.com/R8pFVxBPrM
— FDIC Gov (@FDICgov) March 24, 2020
Earlier this month, the Federal Reserve reduced interest rates to zero, pumped $1.5 trillion in short-term loans into Wall Street and reduced reserve requirement ratios to “zero percent.”
The Federal Reserve Board "has reduced reserve requirement ratios to zero percent." So in other words US banks can now lend out or reinvest up to 100% of their customer's deposits… 🤔 https://t.co/48wnUjWyJN
— Tuur Demeester (@TuurDemeester) March 15, 2020
I’m sure we’ve got nothing to worry about!
This article was posted: Wednesday, March 25, 2020 at 7:02 am