U.S. Economic News
March 23, 2020
U.S. Economic Indicators
The Chicago Fed National Activity Index improved from -0.33 (revised) in January to +0.16 in February, though the report notes that the data for February are unlikely to have been affected much by the COVID-19 outbreak. Measures of production, personal consumption & housing, and employment contributed positively to the headline index, while the indicator for sales, orders, & inventories subtracted from the headline index. Chicago Fed Report
U.S. News
The Wall Street Journal reports that the Fed is massively expanding lending programs aimed at keeping credit markets functioning, expanding its facilities to include corporate and municipal debt while setting no upper bound on its purchase of Treasury and mortgage securities. A proposal currently before Congress would provide $425 billion to the Treasury, allowing the Fed to support riskier types of financing without having to be as concerned with bearing credit losses. WSJ
According to the Washington Post, Senate leadership and Trump officials are resuming talks this morning after Democrats blocked the latest coronavirus stimulus bill from advancing Sunday night, citing a lack of provisions for helping households, hospitals, and health professionals. The enormous stimulus bill under consideration aims to pump money into the economy through payments to individuals and businesses to stem the tide of layoffs and the sharp contraction in consumer spending. WaPo