Tag Archives: Federal Reserve

‘This Is His Top Priority’: McConnell Advances Another Trump Judge as Covid Relief Bill Remains Unfinished

“As a government shutdown looms, and as the pandemic rages on across America, Senate Majority Leader Mitch McConnell continues to push through Trump’s judges until the very end.”

By Jake Johnson, staff writer for Common Dreams. Published 12-19-2020

Photo: THE WORLD NEWS/Twitter

Having kept the Senate in session over the weekend to complete work on a nearly $1 trillion coronavirus relief package and an omnibus government funding bill, Republican Majority Leader Mitch McConnell on Saturday moved to advance yet another of President Donald Trump’s right-wing judicial appointees as the desperately needed stimulus legislation remained unfinished.

The Republican-controlled Senate’s vote to limit debate on Thompson Michael Dietz, a Trump nominee to the U.S. Court of Federal Claims, came as Majority Whip Sen. John Thune (R-S.D.) suggested that coronavirus relief talks could spill into Monday as negotiators struggled to resolve a number of outstanding issues. Continue reading

Share Button

With Rent Freezes About to Expire, Mnuchin Lobbies for More Wall Street Bailouts

As millions of Americans stand on the brink of economic annihilation, the money keeps flowing to Wall Street thanks to carefully contrived mechanisms to maintain a dying financial system afloat.

By Raul Diego  Published 12-4-2020 by MintPress News

Steven Mnuchin. Photo: White House

Many prophetic scenes depicted in a series of Mayan codices written in the early days of the Spanish colony, and translated and compiled in El Libro de los Libros del Chilam Balam, describe a world foreign to its original authors. But, one which was barreling down on them and their civilization even as the Mayan high priests recorded their visions for each stop on their cyclical calendar system.

The metaphors they leaned on to describe these new Western values and systems were accurate, despite having nothing comparable in their own cosmology or parallels in their relationship with the earth. In one of the most striking prophecies, the interpreting shaman warns of the days of “the golden club,” subtly alluding to the new paradigm of wealth and commercial imperatives being imposed on their world. Continue reading

Share Button

Successful GOP Repeal of ACA Would Strip Health Coverage From Millions and Give Top 0.1% a Massive Tax Cut—During a Pandemic

“If Trump gets the Supreme Court to strike down ACA, the richest 0.1% would get a tax cut of $198,000 a year, and Big Pharma would get a tax cut of $2.8 billion. But millions of seniors would pay billions more for prescription drugs, and 20 million would lose their health insurance.”

By Kenny Stancil, staff writer for Common Dreams. Published 10-6-2020

Health Care Reform Law Protests at the US Supreme Court in 2012. Photo: Elvert Barnes/CC

New research released Tuesday shows that if the Supreme Court next month sides with the Trump administration and 18 state attorneys general seeking to repeal the Affordable Care Act, more than 20 million people would lose health insurance and millions more would be forced to pay more for healthcare—in the middle of a pandemic—while Big Pharma and the richest 0.1% would enjoy major tax cuts.

“The stakes in this case, always extraordinarily high”—wrote Tara Straw and Aviva Aron-Dine in one of several reports (pdf) published this week by the Center on Budget and Policy Priorities (CBPP)—”are even higher now amidst a global pandemic and an economic crisis that has caused more people to lose health insurance and become eligible for help from the ACA.” Continue reading

Share Button

‘The Public Has a Right to Know’: Fed Refuses to Release Documents on Fossil Fuel Industry’s Covid-19 Bailouts

“As the climate crisis demands an abrupt shift away from fossil fuels, the federal government should not be creating programs to bail out these polluters.”

By Jake Johnson, staff writer for Common Dreams. Published 7-9-2020

“The Federal Reserve was tasked with creating a massive program to protect workers’ livelihoods during an intense economic and public health crisis. We should, at the very least, expect transparency about how the program is structured,” said Food & Water Action attorney Adam Carlesco. (Photo: Tony Webster/Flickr/cc)

The Federal Reserve has missed a deadline to release documents requested by environmental group Food & Water Action in May to reveal the extent to which the central bank has used one of its major Covid-19 lending programs to rescue the faltering oil and gas industry.

“The public has a right to know if the Fed created an oil and gas bailout at the behest of an industry that has wreaked havoc on our air, water, climate, and potentially the global financial system,” Food & Water Action attorney Adam Carlesco said in a statement. “As the climate crisis demands an abrupt shift away from fossil fuels, the federal government should not be creating programs to bail out these polluters.” Continue reading

Share Button

‘Conflicts of Interest Abound’: Progressives Sound Alarm as BlackRock Prepares to Lead the Fed’s Covid-19 Corporate Bailout Program

“We cannot afford to allow the interests of private corporations to supersede the needs of the American people and the long-term stability of our economy.”

By Jake Johnson, staff writer for Common Dreams. Published 5-11-2020

BlackRock CEO Larry Fink. Screenshot: CNBC

BlackRock, the largest asset management firm on the planet, has for years faced criticism and protests from progressives over its massive investments in fossil fuelsprivate prisons, and the arms industry—and now the financial behemoth is set to take on a leading role in the Federal Reserve’s sprawling coronavirus bailout program.

The Wall Street Journal reported Sunday that BlackRock—which manages over $7 trillion in assets—will in the coming days help the central bank funnel “money into both new and already-issued corporate bonds, assisting the Fed in its recently adopted role as lender of last resort for businesses.” Continue reading

Share Button

‘Lining Up at the Trough’: Federal Reserve to Offer Corporations $500 Billion No-Strings-Attached Bailout Loophole

“Big corporations have shown time and again that they will put their shareholders and executives ahead of their workers if given the choice.”

By Julia Conley, staff writer for Common Dreams. Published 4-28-2020

Through the Primary Market Corporate Credit Facility, the Fed will provide $500 billion to companies by buying bonds, but the companies will not be required to retain employees or limit executive pay. (Photo: Public Domain)

A Federal Reserve program approved by Congress and aimed at providing emergency relief to large companies contains a “catch” which will permit the corporations to lay off employees and spend the money on executive pay, according to a Washington Post report.

Through the Primary Market Corporate Credit Facility, the Fed will provide $500 billion to companies by buying bonds. The corporations will be required to pay the Fed back with interest. Continue reading

Share Button

Fed Economists Warn US Unemployment Rate Could Soon Reach 32%—During Great Depression It Peaked at 25%

“These are very large numbers by historical standards, but this is a rather unique shock that is unlike any other experienced by the U.S. economy in the last 100 years.”

By Jake Johnson, staff writer for Common Dreams. Published 3-31-2020

 

Hundreds of cars waiting to receive food from the Greater Community Food Bank in Duquesne, Pennsylvania on March 30, 2020. Photo: The Mind Unleashed

Economists at the Federal Reserve Bank of St. Louis are warning that if the current rate of U.S. job losses continues, the country’s unemployment rate could reach a staggering 32.1% by the end of June as the coronavirus pandemic-induced downturn sparks mass layoffs across the nation.

Miguel Faria-e-Castro, an economist with the St. Louis Fed, wrote in an analysis last week that 47 million more workers could lose their jobs by the end of the second quarter of 2020, bringing the total number of unemployed people in the U.S. to 52.8 million. As CNBC noted, that number would be “more than three times worse than the peak of the Great Recession.” Continue reading

Share Button

Washington’s recession-fighting toolbox is nearly empty as US economy braces for possible coronavirus outbreak

A wrench may not be enough. mipan/Shutterstock.com

Bill Ferguson, Grinnell College

Investors, policymakers, businesses and the general public are increasingly concerned the coronavirus’ rapid spread will lead to a recession. While this outcome is hard for economists like me to predict, we do know one thing: The U.S. is not prepared to fight a deep recession.

Policymakers basically have two methods for reversing a downturn: monetary stimulus, primarily through reduced borrowing costs; and fiscal stimulus, when the government spends more or cuts taxes.

Unfortunately, the U.S. currently has dim prospects for success with either option. Continue reading

Share Button

Markets Plunge as Critics Say Trump’s “Keep the Stock Market Calm” Approach Has Backfired

“Trump staking his presidency on a good stock market was once just an annoying tic,” said The Nation‘s Jeet Heer. “But now there’s a situation that makes it actively harmful.”

By for Common Dreams. Published 3-5-2020

New York Stock Exchange. Photo: Public domain

The stock market plunged 970 points Thursday, or 3.58%, as fears of the economic impact of the global coronavirus outbreak—and President Donald Trump’s mishandling of the crisis—continued to roil the world’s financial markets after last week’s panic sent markets into freefall.

“It’s kind of like an earthquake—there’s the earthquake, which is last week, and then there’s the aftershocks, which is this week,” MUFG Union Bank chief financial economist Chris Rupkey told the New York Post. Continue reading

Share Button

You’ll Never Guess How Big Banks Want the Fed to Handle the Coronavirus: More Wall Street Deregulation

“Surely, the big banks aren’t craven enough to use COVID-19 as an excuse to lobby for long-sought regulatory rollbacks, right? Wrong!”

By for Common Dreams. Published 3-3-2020

The Bank Policy Institute, a lobbying group for big banks, drew criticism for a policy memo suggesting financial deregulation as a response to the coronavirus outbreak. (Photo: Phillipp/Flickr/cc)

A lobbying group for big banks in the United States came under fire Tuesday from financial industry experts for pressuring federal officials to push through long-sought regulatory rollbacks in response to the worldwide economic concerns sparked by the global coronavirus outbreak.

On Sunday, Bank Policy Institute (BPI) chief executive Greg Baer, head of research Francisco Covas, and chief economist Bill Nelson published a post on the group’s website entitled “Actions the Fed Could Take in Response to COVID-19.” The BPI is a lobbying group whose members include Bank of America, Citigroup JPMorgan Chase, and Wells Fargo. Continue reading

Share Button