U.S. Economic News
October 21, 2020
U.S. News
The New York Times reports that while the CARES Act allocated $454 billion to back up to $4 trillion in Fed loan programs, those programs have made just $20 billion in loans so far. The failure of the massive Fed lifeline to fully materialize was largely the result of calmer markets after the loan programs were introduced; however, the programs’ effectiveness was also constrained by risk aversion at the Treasury and hesitance by Fed officials to drastically expand the central bank’s role beyond that of a lender of last resort. NYT
According to the Financial Times, shipping costs from Asia to the U.S. have soared over the past month as American companies push to restock depleted inventories ahead of the holiday season and potential winter surge of COVID-19. The recovery in demand for transpacific goods has outpaced the pickup in supply, contributing to ongoing volatility and imbalances in the shipping market. FT