thefiscaltimes--2020-11-18--Fauci Urges Covid Response Sharply Different From Trump's

The United States reported 166,045 new Covid-19 cases and 995 more virus-related deaths on Monday , according to data from Johns Hopkins University .
The nation has now seen more than 100,000 new infections a day for two straight weeks .
Here ’ s what else is happening on the pandemic front : Fauci calls for ‘ uniform ’ pandemic response rather than ‘ disjointed ’ state-by-state effort : Dr. Anthony Fauci , the country ’ s top infectious disease expert , said Tuesday that the United States needs “ a uniform approach ” to combating the pandemic rather than @ @ @ @ @ @ @ comments that , as The New York Times ’ Sheryl Gay Stolberg notes , “ echoed the views of President-elect Joseph R. Biden Jr. and contrasted sharply with President Trump ’ s coronavirus strategy.
” “ We need some fundamental public health measures that everyone should be adhering to , not a disjointed , ‘ One state says one thing , the other state says another thing , ’ ” Fauci said at a virtual New York Times event .
Fauci reportedly also stressed the public health importance of a smooth presidential transition @ @ @ @ @ @ @ not be a political issue .
“ We ’ ve got to get public health issues out of the realm of political divisiveness — this is not a political issue , ” he said .
“ We ’ ve got to do everything we possibly can to pull together as a nation.
” Business Roundtable backs Covid relief bill , national mask mandate : The head of the Business Roundtable , a group of CEOs from top U.S. companies , on Tuesday called for the presidential transition to a Biden administration to proceed @ @ @ @ @ @ @ relief package to address the coronavirus pandemic .
“ What we ’ re talking about here is important economic relief for people who are hurting , and a lot of economic damage can be done in the next two or three months before the next Congress can get going , '' Joshua Bolten , the group 's president and a former White House Chief of Staff under President George W. Bush , told reporters , according to The Hill .
Bolten reportedly urged lawmakers to address the surge in coronavirus cases by passing @ @ @ @ @ @ @ small businesses , families and schools and then build on that legislation with another package once Biden is on office .
He said the CEO group supports a national testing strategy and mask mandate among its priorities for an incoming Biden administration and new Congress .
Bolten also said that the group believes Biden should roll back some of the tariffs on foreign goods imposed by the Trump administration .
Medical associations urge Trump to cooperate with Biden on pandemic : The leaders of the American Hospital Association , the American Medical Association @ @ @ @ @ @ @ urged President Trump to cooperate with the Biden transition team and share “ all critical information ” related to Covid-19 in order to “ save countless lives.
” “ All information about the capacity of the Strategic National Stockpile , the assets from Operation Warp Speed , and plans for dissemination of therapeutics and vaccines needs to be shared as quickly as possible to ensure that there is continuity in strategic planning so that there is no lapse in our ability to care for patients , ” the three leaders wrote in a @ @ @ @ @

The United States reported 166,045 new Covid-19 cases and 995 more virus-related deaths on Monday, according to data from Johns Hopkins University. The nation has now seen more than 100,000 new infections a day for two straight weeks. Here’s what else is happening on the pandemic front:
Fauci calls for ‘uniform’ pandemic response rather than ‘disjointed’ state-by-state effort: Dr. Anthony Fauci, the country’s top infectious disease expert, said Tuesday that the United States needs “a uniform approach” to combating the pandemic rather than a “disjointed” state-by-state effort — comments that, as The New York Times’ Sheryl Gay Stolberg notes, “echoed the views of President-elect Joseph R. Biden Jr. and contrasted sharply with President Trump’s coronavirus strategy.”
“We need some fundamental public health measures that everyone should be adhering to, not a disjointed, ‘One state says one thing, the other state says another thing,’” Fauci said at a virtual New York Times event.
Fauci reportedly also stressed the public health importance of a smooth presidential transition and said that the pandemic response should not be a political issue. “We’ve got to get public health issues out of the realm of political divisiveness — this is not a political issue,” he said. “We’ve got to do everything we possibly can to pull together as a nation.”
Business Roundtable backs Covid relief bill, national mask mandate: The head of the Business Roundtable, a group of CEOs from top U.S. companies, on Tuesday called for the presidential transition to a Biden administration to proceed and said lawmakers should quickly pass another relief package to address the coronavirus pandemic. “What we’re talking about here is important economic relief for people who are hurting, and a lot of economic damage can be done in the next two or three months before the next Congress can get going," Joshua Bolten, the group's president and a former White House Chief of Staff under President George W. Bush, told reporters, according to The Hill.
Bolten reportedly urged lawmakers to address the surge in coronavirus cases by passing a relief bill that includes aid for small businesses, families and schools and then build on that legislation with another package once Biden is on office. He said the CEO group supports a national testing strategy and mask mandate among its priorities for an incoming Biden administration and new Congress. Bolten also said that the group believes Biden should roll back some of the tariffs on foreign goods imposed by the Trump administration.
Medical associations urge Trump to cooperate with Biden on pandemic: The leaders of the American Hospital Association, the American Medical Association and the American Nurses Association on Tuesday urged President Trump to cooperate with the Biden transition team and share “all critical information” related to Covid-19 in order to “save countless lives.”
“All information about the capacity of the Strategic National Stockpile, the assets from Operation Warp Speed, and plans for dissemination of therapeutics and vaccines needs to be shared as quickly as possible to ensure that there is continuity in strategic planning so that there is no lapse in our ability to care for patients,” the three leaders wrote in a letter to the president.


thefiscaltimes--2020-11-18--Talks to Keep the Government Open Advance, but No Signs of a Stimulus Deal

Congressional staffers are making progress in talks over an omnibus funding package for the federal government ahead of a December 11 deadline , Politico reported Tuesday .
Appropriators are working on a 12-bill , bicameral agreement that could win support from both parties , and negotiators are reportedly close to defining the size of elements of the spending package .
Senate Majority Leader Mitch McConnell ( R-KY ) said he was encouraged by the progress so far .
“ Our colleagues on the committee and their counterparts in the House need to continue their bicameral discussions and settle on top-line @ @ @ @ @ @ @ ” he said .
“ I hope they will be able to reach this broad agreement by the end of this very week.
” McConnell also said that he and House Speaker Nancy Pelosi ( D-CA ) were in agreement on the issue .
“ The Speaker would like to do that .
I would like to do that , ” McConnell said when asked about the prospects for the 2021 omnibus .
President Trump could be a bit of a wildcard in the process .
McConnell said he hoped the administration would @ @ @ @ @ @ @ , but the White House has been silent so far .
Senate Appropriations Chair Richard Shelby ( R-AL ) — who reported that “ extensive talks ” are occurring and that “ some basic agreements in principle ” are in place — said that the president has not offered support for the potential omnibus package , nor for a possible continuing resolution that would be necessary if the omnibus talks fail .
“ We understand that the president has a powerful voice , ” Shelby said .
“ Let ’ s see what @ @ @ @ @ @ @ Schumer ask McConnell to restart stimulus talks : It ’ s still looking unlikely that a coronavirus relief bill will pass before the New Year .
“ There are no conversations right now about another round of Covid relief .
None , ” Politico ’ s Jake Sherman reported Tuesday .
“ The White House is silent .
The Hill is quiet .
That means no new programs , no new money for Americans before the holiday season.
” Pelosi and Senate Minority Leader Chuck Schumer ( D-NY ) on Tuesday asked McConnell @ @ @ @ @ @ @ so that we can work towards a bipartisan , bicameral Covid-19 relief agreement to crush the virus and save American lives.
” The two sides remain far apart on the size and details of another relief package .
If lawmakers are unable to agree , numerous pandemic-related aid programs will expire at the end of December .
They include two emergency unemployment programs , the moratorium on evictions , aid for state and local governments and student loan forbearance .
“ In other words , ” Sherman said , “ a huge safety @ @ @ @ @ @ @ yanked away at the end of 2020 , and Congress isn ’ t preparing much of anything to keep people from plummeting.
” The best hope for passing at least some aid may be by attaching it to the omnibus spending package currently under negotiation , Sen. Roy Blunt ( R-MO ) , a senior appropriator , said Monday .
“ There seems to be more interest in trying to move an omnibus and more serious discussion about that than I 've heard about a Covid package , ” Blunt told reporters .

Congressional staffers are making progress in talks over an omnibus funding package for the federal government ahead of a December 11 deadline, Politico reported Tuesday. Appropriators are working on a 12-bill, bicameral agreement that could win support from both parties, and negotiators are reportedly close to defining the size of elements of the spending package.
Senate Majority Leader Mitch McConnell (R-KY) said he was encouraged by the progress so far. “Our colleagues on the committee and their counterparts in the House need to continue their bicameral discussions and settle on top-line dollar amounts for each separate bill,” he said. “I hope they will be able to reach this broad agreement by the end of this very week.”
McConnell also said that he and House Speaker Nancy Pelosi (D-CA) were in agreement on the issue. “The Speaker would like to do that. I would like to do that,” McConnell said when asked about the prospects for the 2021 omnibus.
President Trump could be a bit of a wildcard in the process. McConnell said he hoped the administration would accept whatever agreement congressional negotiators can reach, but the White House has been silent so far. Senate Appropriations Chair Richard Shelby (R-AL) — who reported that “extensive talks” are occurring and that “some basic agreements in principle” are in place — said that the president has not offered support for the potential omnibus package, nor for a possible continuing resolution that would be necessary if the omnibus talks fail.
“We understand that the president has a powerful voice,” Shelby said. “Let’s see what we can accomplish first.”
Pelosi and Schumer ask McConnell to restart stimulus talks: It’s still looking unlikely that a coronavirus relief bill will pass before the New Year. “There are no conversations right now about another round of Covid relief. None,” Politico’s Jake Sherman reported Tuesday. “The White House is silent. The Hill is quiet. That means no new programs, no new money for Americans before the holiday season.”
Pelosi and Senate Minority Leader Chuck Schumer (D-NY) on Tuesday asked McConnell to come to the negotiating table “so that we can work towards a bipartisan, bicameral Covid-19 relief agreement to crush the virus and save American lives.” The two sides remain far apart on the size and details of another relief package.
If lawmakers are unable to agree, numerous pandemic-related aid programs will expire at the end of December. They include two emergency unemployment programs, the moratorium on evictions, aid for state and local governments and student loan forbearance. “In other words,” Sherman said, “a huge safety net for Americans is going to be yanked away at the end of 2020, and Congress isn’t preparing much of anything to keep people from plummeting.”
The best hope for passing at least some aid may be by attaching it to the omnibus spending package currently under negotiation, Sen. Roy Blunt (R-MO), a senior appropriator, said Monday. “There seems to be more interest in trying to move an omnibus and more serious discussion about that than I've heard about a Covid package,” Blunt told reporters.


thefiscaltimes--2020-11-18--12 Million Americans Could Fall Off the ‘Jobless Benefits Cliff’: Report

About 12 million Americans will lose federal unemployment benefits at the end of the year if Congress fails to pass new legislation , according to a new report from the liberal-leaning Century Foundation that examines the toll that failure could take on both households and the broader economy .
The “ jobless benefit cliff ” will occur on December 26 , when federal funding for two of the main emergency unemployment programs created by the Cares Act — Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation — runs out .
Here ’ s how researchers Andrew Stettner and Elizabeth Pancotti @ @ @ @ @ @ @ million unemployed people will lose their Pandemic Unemployment Assistance ( PUA ) benefits on December 26 .
PUA provides aid to self-employed and gig workers , who are usually unable to participate in state benefit systems .
Another 945,000 people will exhaust their PUA benefits before the December expiration date .
About 4.6 million people will lose their Pandemic Emergency Unemployment Compensation benefits on December 26 .
PEUC provides extended benefits for unemployed workers who have hit the time limit in their state-level programs .
Another 3.5 million people will have run out @ @ @ @ @ @ @ All told , the 12 million people who will lose their federal unemployment benefits on the day after Christmas account for more than half of the 21.1 million currently receiving any type of jobless assistance .
About 3 million of the workers losing federal aid will be able to access state-level unemployment programs , but the majority will be left with no benefits past the expiration date .
Unlike during previous recessions , the unemployment programs created by Congress in the Cares Act back in March came with “ hard ” cutoff dates @ @ @ @ @ @ @ means payments will be ended immediately , regardless of how many weeks of eligibility an aid recipient may have left .
“ Previous laws , such as the American Recovery and Reinvestment Act of 2009 , had a soft cutoff , which allowed individuals already receiving benefits to continue doing so until their full term was exhausted , but stopped any additional workers from qualifying , ” the researchers write .
“ The important difference here is that a soft cutoff creates a gentle downward slope for workers and the economy , while @ @ @ @ @ @ @ Effects on households : The researchers reviewed the literature on how long-term unemployment affects individuals and households , and the results are not pretty .
Those who are jobless for more than 26 weeks and lose unemployment aid suffer in virtually every aspect of their lives , from their ability to maintain housing and pay bills to the condition of their mental and physical health , and the negative effects are long-lasting .
“ For this reason , ” Stettner and Pancotti write , “ Congress has historically provided federal support for extended @ @ @ @ @ @ @ facing long-term unemployment and keeps these benefits in place until well into a cycle of recovery.
” Effects on the economy : Most economists see aid to the unemployed as an important means of maintaining demand in the economy during a recession , supporting jobs by pumping dollars into local businesses .
“ Unemployment insurance benefits have been proven over and over again to be one of the best dollar-for-dollar stimulus programs , ” the researchers say .
But the hard cutoff of benefits at the end of December for millions of workers @ @ @ @ @ @ @ of an economic recovery that is already slowing .
Stettner and Pancotti estimate that the loss of federal unemployment assistance will reduce spending in the economy by about $ 2.5 billion per week , a number that will grow as more workers exhaust their state benefits in early 2021 .
In previous recessions , lawmakers waited longer to end emergency unemployment aid programs , giving the jobless more time — often years — to get back on their feet .
If Congress allows it to occur , the December 26 cutoff will pull @ @ @ @ @ @ @ , even as the primary cause of the crisis — a raging pandemic — gathers strength .
“ Nobody is talking about this , ” Stettner told The Washington Post .
“ We ’ re just careening into this huge cliff and it ’ s like it ’ s not even happening .
People are just totally , completely ignoring the situation at a time when things are getting worse before they ’ re going to get better in terms of public health .
”

About 12 million Americans will lose federal unemployment benefits at the end of the year if Congress fails to pass new legislation, according to a new report from the liberal-leaning Century Foundation that examines the toll that failure could take on both households and the broader economy.
The “jobless benefit cliff” will occur on December 26, when federal funding for two of the main emergency unemployment programs created by the Cares Act — Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation — runs out. Here’s how researchers Andrew Stettner and Elizabeth Pancotti break down the numbers:
About 7.3 million unemployed people will lose their Pandemic Unemployment Assistance (PUA) benefits on December 26. PUA provides aid to self-employed and gig workers, who are usually unable to participate in state benefit systems. Another 945,000 people will exhaust their PUA benefits before the December expiration date.
About 4.6 million people will lose their Pandemic Emergency Unemployment Compensation benefits on December 26. PEUC provides extended benefits for unemployed workers who have hit the time limit in their state-level programs. Another 3.5 million people will have run out of PEUC benefits before December 26.
All told, the 12 million people who will lose their federal unemployment benefits on the day after Christmas account for more than half of the 21.1 million currently receiving any type of jobless assistance. About 3 million of the workers losing federal aid will be able to access state-level unemployment programs, but the majority will be left with no benefits past the expiration date.
Unlike during previous recessions, the unemployment programs created by Congress in the Cares Act back in March came with “hard” cutoff dates, Stettner and Pancotti say, which means payments will be ended immediately, regardless of how many weeks of eligibility an aid recipient may have left. “Previous laws, such as the American Recovery and Reinvestment Act of 2009, had a soft cutoff, which allowed individuals already receiving benefits to continue doing so until their full term was exhausted, but stopped any additional workers from qualifying,” the researchers write. “The important difference here is that a soft cutoff creates a gentle downward slope for workers and the economy, while a hard cutoff creates a cliff.”
Effects on households: The researchers reviewed the literature on how long-term unemployment affects individuals and households, and the results are not pretty. Those who are jobless for more than 26 weeks and lose unemployment aid suffer in virtually every aspect of their lives, from their ability to maintain housing and pay bills to the condition of their mental and physical health, and the negative effects are long-lasting. “For this reason,” Stettner and Pancotti write, “Congress has historically provided federal support for extended benefits when large numbers of Americans are facing long-term unemployment and keeps these benefits in place until well into a cycle of recovery.”
Effects on the economy: Most economists see aid to the unemployed as an important means of maintaining demand in the economy during a recession, supporting jobs by pumping dollars into local businesses. “Unemployment insurance benefits have been proven over and over again to be one of the best dollar-for-dollar stimulus programs,” the researchers say. But the hard cutoff of benefits at the end of December for millions of workers will create more drag in the middle of an economic recovery that is already slowing. Stettner and Pancotti estimate that the loss of federal unemployment assistance will reduce spending in the economy by about $2.5 billion per week, a number that will grow as more workers exhaust their state benefits in early 2021.
In previous recessions, lawmakers waited longer to end emergency unemployment aid programs, giving the jobless more time — often years — to get back on their feet. If Congress allows it to occur, the December 26 cutoff will pull the plug in less than 12 months, even as the primary cause of the crisis — a raging pandemic — gathers strength.
“Nobody is talking about this,” Stettner told The Washington Post. “We’re just careening into this huge cliff and it’s like it’s not even happening. People are just totally, completely ignoring the situation at a time when things are getting worse before they’re going to get better in terms of public health.”


thefiscaltimes--2020-11-18--Angry at Vaccine Makers, Trump Pushes Plan to Lower Drug Prices

President Trump is angry that Pfizer and Moderna announced promising results for their Covid-19 vaccines after the election , The @ @ @ @ @ Winfield Cunningham reports , and is now seeking to impose a rule that would require @ @ @ @ @ prices for some drugs .
The so-called “ most favored nation '' policy would set @ @ @ @ @ the lowest level paid by any country in the Organization for Economic Cooperation and Development @ @ @ @ @ impose the rule before , but drugmakers thought the administration had run out of time @ @ @ @ @ Trump being pissed off because he thought the industry campaigned against him and delayed in @ @ @ @ @ results , so he is going to get back at them with favored nations , @ @ @ @ @ Winfield Cunningham .
The rule would be difficult to impose in the few days the @ @ @ @ @ , and could be subject to legal challenges or reversal at a later date .

President Trump is angry that Pfizer and Moderna announced promising results for their Covid-19 vaccines after the election, The Washington Post’s Paige Winfield Cunningham reports, and is now seeking to impose a rule that would require pharmaceutical firms to accept lower prices for some drugs.
The so-called “most favored nation" policy would set prices paid by Medicare at the lowest level paid by any country in the Organization for Economic Cooperation and Development. Trump had threatened to impose the rule before, but drugmakers thought the administration had run out of time.
“This is basically Trump being pissed off because he thought the industry campaigned against him and delayed in announcing the [vaccine] results, so he is going to get back at them with favored nations,” a GOP lobbyist told Winfield Cunningham. The rule would be difficult to impose in the few days the administration has left, however, and could be subject to legal challenges or reversal at a later date.


thefiscaltimes--2020-11-18--Pentagon Fails Another Audit

Pentagon Fails Another Audit

The U.S. Department of Defense failed its third-ever audit , officials said Monday , and it may be years before @ @ @ @ @ clean report .
Thomas Harker , the acting comptroller , said officials “ have been @ @ @ @ @ journey that will require a sustained effort over several years , ” with the current @ @ @ @ @ results in 2027 .
The audit cost $ 203 million this year , Harker said @ @ @ @ @ about $ 700 million .

The U.S. Department of Defense failed its third-ever audit, officials said Monday, and it may be years before the Pentagon can achieve a clean report.
Thomas Harker, the acting comptroller, said officials “have been clear that this is a journey that will require a sustained effort over several years,” with the current timeline pointing to more satisfactory results in 2027.
The audit cost $203 million this year, Harker said, while identifying savings worth about $700 million.


thefiscaltimes--2020-11-16--Biden Warns 'More People May Die' if Trump Refuses to Coordinate

President-elect Joe Biden on Monday called for greater cooperation from the Trump White House in the effort to plan the distribution of vaccines for Covid-19 in the coming weeks and months .
“ They say they have this Warp Speed program that not only dealt with getting vaccines but also how to distribute this , ” Biden said at a press event , referring to the Trump administration ’ s coronavirus treatment and vaccine program .
“ If we have to wait until January 20 to start that planning , it puts us behind over a month , month and @ @ @ @ @ @ @ there be coordination now , now or as rapidly as we can get that done.
” “ More people may die if we do n't coordinate , '' Biden warned .
Biden has announced the formation of his own coronavirus advisory board that is expected to work with Trump administration health officials as it devises plans for the incoming president to deal with the pandemic .
But Biden transition officials have been unable to speak to the White House ’ s Covid-19 task force as Trump continues to deny the election results and @ @ @ @ @ @ @ on the initiation of the formal transition process .
Fauci expresses concern : Dr. Anthony Fauci , who serves on the current White House Coronavirus Task Force , said Monday that the Trump administration ’ s refusal to cooperate with the incoming Biden administration could impair the nation ’ s response to the Covid-19 pandemic .
The comments from the director of the National Institute of Allergy and Infectious Diseases came after news that a second vaccine candidate showed enormous promise in early testing .
But Fauci expressed concerns that the lack of @ @ @ @ @ @ @ hamper the rapid progress , making it harder to “ pass the baton ” to the Biden team without slowing stride .
“ The virus is not going to stop and call a time out while things change .
The virus is just going to keep going .
The process is just going to keep going , ” Fauci said in an interview on NBC ’ s “ Today ” show .
Asked if he was worried about the lack of cooperation from the Trump team so far , Fauci said , “ @ @ @ @ @ @ @ 're concerned about .
I mean , as you know , I 've served in six administrations , so I 've seen a number of transitions and I know that transitions are very important .
Hopefully , we 'll see that soon.
” Trump largely absent : President Trump has not attended meetings of his coronavirus task force for months , and he has reportedly stopped being involved in the management of the federal response to the crisis , even as he ignores or criticizes his own officials for their efforts to encourage @ @ @ @ @ @ @ charge that the president is failing to perform one of his most basic duties .
“ The duty of a president is to protect the national security of the United States , and this is the most prominent disease of mass destruction America ’ s ever faced , and we have a commander in chief who has run away from the problem and has made it worse , ” Jack Chow , a U.S. ambassador for global HIV/AIDS during the George W. Bush administration , told The Washington Post .
“ We had @ @ @ @ @ @ @ months to bring it down to safer levels , and we failed .
We are on the verge of losing control of this pandemic.
” While Trump officials deny the charge – “ President Trump and his entire administration remain intensely focused on defeating this virus and saving lives as Operation Warp Speed continues to fast track lifesaving treatments and vaccines in record time , ” White House spokeswoman Sarah Matthews said – at least one former administration official is more critical .
“ The numbers are going to get very big in @ @ @ @ @ @ @ said Scott Gottlieb , Trump ’ s former FDA commissioner .
“ We are just going to have a lot of death and disease .
”

President-elect Joe Biden on Monday called for greater cooperation from the Trump White House in the effort to plan the distribution of vaccines for Covid-19 in the coming weeks and months.
“They say they have this Warp Speed program that not only dealt with getting vaccines but also how to distribute this,” Biden said at a press event, referring to the Trump administration’s coronavirus treatment and vaccine program. “If we have to wait until January 20 to start that planning, it puts us behind over a month, month and a half. So it's important there be coordination now, now or as rapidly as we can get that done.”
“More people may die if we don't coordinate," Biden warned.
Biden has announced the formation of his own coronavirus advisory board that is expected to work with Trump administration health officials as it devises plans for the incoming president to deal with the pandemic.
But Biden transition officials have been unable to speak to the White House’s Covid-19 task force as Trump continues to deny the election results and the General Services Administration refuses to sign-off on the initiation of the formal transition process.
Fauci expresses concern: Dr. Anthony Fauci, who serves on the current White House Coronavirus Task Force, said Monday that the Trump administration’s refusal to cooperate with the incoming Biden administration could impair the nation’s response to the Covid-19 pandemic.
The comments from the director of the National Institute of Allergy and Infectious Diseases came after news that a second vaccine candidate showed enormous promise in early testing. But Fauci expressed concerns that the lack of cooperation from the Trump White House could hamper the rapid progress, making it harder to “pass the baton” to the Biden team without slowing stride.
“The virus is not going to stop and call a time out while things change. The virus is just going to keep going. The process is just going to keep going,” Fauci said in an interview on NBC’s “Today” show.
Asked if he was worried about the lack of cooperation from the Trump team so far, Fauci said, “Obviously, it's something that we're concerned about. I mean, as you know, I've served in six administrations, so I've seen a number of transitions and I know that transitions are very important. Hopefully, we'll see that soon.”
Trump largely absent: President Trump has not attended meetings of his coronavirus task force for months, and he has reportedly stopped being involved in the management of the federal response to the crisis, even as he ignores or criticizes his own officials for their efforts to encourage social distancing and mask wearing. Critics charge that the president is failing to perform one of his most basic duties.
“The duty of a president is to protect the national security of the United States, and this is the most prominent disease of mass destruction America’s ever faced, and we have a commander in chief who has run away from the problem and has made it worse,” Jack Chow, a U.S. ambassador for global HIV/AIDS during the George W. Bush administration, told The Washington Post. “We had an opportunity twice over the past eight months to bring it down to safer levels, and we failed. We are on the verge of losing control of this pandemic.”
While Trump officials deny the charge – “President Trump and his entire administration remain intensely focused on defeating this virus and saving lives as Operation Warp Speed continues to fast track lifesaving treatments and vaccines in record time,” White House spokeswoman Sarah Matthews said – at least one former administration official is more critical.
“The numbers are going to get very big in terms of hospitalizations and deaths,” said Scott Gottlieb, Trump’s former FDA commissioner. “We are just going to have a lot of death and disease.”


thefiscaltimes--2020-11-20--Mnuchin Asks Fed to Return $455 Billion in Unspent Covid-Relief Funds

Treasury Secretary Steven Mnuchin on Thursday asked the Federal Reserve to allow a number of its emergency lending programs to expire as scheduled at the end of the year and return hundreds of billions of dollars in unspent funds from its emergency pandemic lending programs .
Mnuchin said that the programs were no longer needed , but in a short but extraordinary response , the Fed publicly disagreed , signaling a rift between the Treasury and the central bank .
“ I am requesting that the Federal Reserve return the unused funds to the Treasury , ” Mnuchin wrote in @ @ @ @ @ @ @ Powell .
“ This will allow Congress to re-appropriate $ 455 billion , consisting of $ 429 billion in excess Treasury funds for the Federal Reserve facilities and $ 26 billion in unused Treasury direct loan funds.
” Mnuchin asked that five programs for emergency loans to businesses and local governments expire as scheduled on December 31 .
“ The Fed programs were launched this spring to stabilize markets and extend credit to U.S. companies as the Covid-19 pandemic took hold , ” Bloomberg ’ s Saleha Mohsin and Catarina Saraiva note .
@ @ @ @ @ @ @ take-up has been relatively low -- which the Fed says is a sign that they ’ ve worked.
” Mnuchin requested that , out of an “ abundance of caution , ” four other Fed lending programs be extended for 90 days .
In its response , the Fed said that it “ would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy.
” Powell said Tuesday that he didn ’ t think it @ @ @ @ @ @ @ .
Mnuchin ’ s letter said that , in the “ unlikely event ” that the shuttered lending facilities are needed again , the Fed could request approval from the Treasury to re-open them , using existing emergency funding from the Treasury new money from Congress .

Treasury Secretary Steven Mnuchin on Thursday asked the Federal Reserve to allow a number of its emergency lending programs to expire as scheduled at the end of the year and return hundreds of billions of dollars in unspent funds from its emergency pandemic lending programs.
Mnuchin said that the programs were no longer needed, but in a short but extraordinary response, the Fed publicly disagreed, signaling a rift between the Treasury and the central bank.
“I am requesting that the Federal Reserve return the unused funds to the Treasury,” Mnuchin wrote in a letter to Federal Reserve Chair Jerome Powell. “This will allow Congress to re-appropriate $455 billion, consisting of $429 billion in excess Treasury funds for the Federal Reserve facilities and $26 billion in unused Treasury direct loan funds.”
Mnuchin asked that five programs for emergency loans to businesses and local governments expire as scheduled on December 31. “The Fed programs were launched this spring to stabilize markets and extend credit to U.S. companies as the Covid-19 pandemic took hold,” Bloomberg’s Saleha Mohsin and Catarina Saraiva note. “They helped quell the panic but take-up has been relatively low -- which the Fed says is a sign that they’ve worked.”
Mnuchin requested that, out of an “abundance of caution,” four other Fed lending programs be extended for 90 days.
In its response, the Fed said that it “would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy.” Powell said Tuesday that he didn’t think it was time yet to end the programs.
Mnuchin’s letter said that, in the “unlikely event” that the shuttered lending facilities are needed again, the Fed could request approval from the Treasury to re-open them, using existing emergency funding from the Treasury new money from Congress.


thefiscaltimes--2020-11-19--Jobless Claims Jump as Recovery Risks Grow

The pace of layoffs increased for the first time in five weeks , raising concerns about the economic damage being caused by the resurgent coronavirus .
About 742,000 people filed initial jobless claims last week , the Labor Department announced Thursday , an increase of more than 30,000 from the week before .
Another 320,000 filed for benefits through the Pandemic Unemployment Assistance program , which aids self-employed and gig workers , bringing the total of new filings to more than 1 million .
The report did have some good news , however .
All told , the number of @ @ @ @ @ @ @ fell significantly , dropping by 840,000 to 20.3 million .
At the same time , though , that level of participation in jobless assistance programs remains exceptionally high , and the number of people falling into long-term unemployment is growing , with nearly 4.4 million people receiving aid in the Pandemic Emergency Unemployment Compensation program for those who have exhausted their state-level benefits .
Bumpy path for the labor market : Economists worry that ramped up restrictions enacted to fight the virus surge could drive unemployment higher in coming months .
“ The @ @ @ @ @ @ @ quite rocky , unfortunately , ” Nathan Sheets , PGIM Fixed Income ’ s chief economist , told Bloomberg News .
“ The virus and the restrictions being put in place to fight the virus are likely to take a bite out of economic activity over the next , say , three or four months.
” Warnings from analysts : The International Monetary Fund released a report Thursday that warns that the recovery is looking less robust .
“ While global economic activity has picked up since June , there are signs that @ @ @ @ @ @ @ and the crisis is likely to leave deep , unequal scars , ” the report says .
“ Uncertainty and risks are exceptionally high.
” The G-20 , a forum for central bankers from the leading industrialized nations , also expressed concerns .
“ The recovery is uneven , highly uncertain and subject to elevated downside risks , including those arising from renewed virus outbreaks in some economies , ” the group said in a communique reported by Bloomberg .
IMF Managing Director Kristalina Georgieva told Bloomberg that the data underlines the need @ @ @ @ @ @ @ is “ losing momentum , and in that context our first message to leaders is : do not withdraw support for the economy prematurely , ” Georgieva said Thursday .
“ It ’ s so important that we don ’ t pull back until we see the health crisis in the rear-view mirror .
”

The pace of layoffs increased for the first time in five weeks, raising concerns about the economic damage being caused by the resurgent coronavirus.
About 742,000 people filed initial jobless claims last week, the Labor Department announced Thursday, an increase of more than 30,000 from the week before. Another 320,000 filed for benefits through the Pandemic Unemployment Assistance program, which aids self-employed and gig workers, bringing the total of new filings to more than 1 million.
The report did have some good news, however. All told, the number of people receiving any kind of unemployment aid fell significantly, dropping by 840,000 to 20.3 million.
At the same time, though, that level of participation in jobless assistance programs remains exceptionally high, and the number of people falling into long-term unemployment is growing, with nearly 4.4 million people receiving aid in the Pandemic Emergency Unemployment Compensation program for those who have exhausted their state-level benefits.
Bumpy path for the labor market: Economists worry that ramped up restrictions enacted to fight the virus surge could drive unemployment higher in coming months. “The road to recovery is likely to be quite rocky, unfortunately,” Nathan Sheets, PGIM Fixed Income’s chief economist, told Bloomberg News. “The virus and the restrictions being put in place to fight the virus are likely to take a bite out of economic activity over the next, say, three or four months.”
Warnings from analysts: The International Monetary Fund released a report Thursday that warns that the recovery is looking less robust. “While global economic activity has picked up since June, there are signs that the recovery may be losing momentum, and the crisis is likely to leave deep, unequal scars,” the report says. “Uncertainty and risks are exceptionally high.”
The G-20, a forum for central bankers from the leading industrialized nations, also expressed concerns. “The recovery is uneven, highly uncertain and subject to elevated downside risks, including those arising from renewed virus outbreaks in some economies,” the group said in a communique reported by Bloomberg.
IMF Managing Director Kristalina Georgieva told Bloomberg that the data underlines the need for more fiscal support. The recovery is “losing momentum, and in that context our first message to leaders is: do not withdraw support for the economy prematurely,” Georgieva said Thursday. “It’s so important that we don’t pull back until we see the health crisis in the rear-view mirror.”


thefiscaltimes--2020-11-20--Op-Ed of the Day: The Case for Bailing Out Cities and States

Richard Ravitch helped save New York City from bankruptcy in the 1970s .
He says there ’ s plenty of reason to now bail out cities and states facing financial crises as a result of the coronavirus pandemic , including New York — in fact , he writes in a New York Times op-ed , there are millions of reasons for the federal government to help : “ Imagine that cities and states were considered an industrial sector , like automobiles or airlines .
Collectively , they employ about 23 million essential workers like teachers , police officers and firefighters @ @ @ @ @ @ @ to the nation ’ s gross domestic product .
“ Now imagine that one of the most important industry players was New York City , which employs about 325,000 workers .
They , along with the city ’ s 3.5 million private-sector workers in finance , entertainment , communications and other industries , add $ 1 trillion annually to the country ’ s gross domestic product.
” Only the federal government can help , Ravitch writes , and without such aid cities will have to cut essential workers , pile on debt that @ @ @ @ @ @ @ , in some cases , declare bankruptcy .
New York ’ s Metropolitan Transportation Authority , which Ravitch led four decades ago , warned Wednesday that it would have to slash subway and bus service by 40 % and cut more than 9,300 jobs if it doesn ’ t get more federal aid .
President-elect Joe Biden will have to act quickly since President Trump and Senate Republicans have objected to providing aid to what they describe as badly run Democratic-led states , even as red states face plenty of financial pain as @ @ @ @ @ @ @ ( R-KY ) this week said that Democratic demands for “ a massive slush fund ” for state and city governments have blocked bipartisan action on a Covid relief package .
Ravitch responds to such criticisms by arguing that New York and other cities are in trouble “ not because of overspending , as Republicans imagine , but because of a badly managed pandemic.
” And if Congress can help important industries hit hard by the virus outbreak , “ it can also surely aid states and cities.
” Read the full op-ed @ @ @ @ @ @ @ steps Biden should take , at The New York Times .

Richard Ravitch helped save New York City from bankruptcy in the 1970s. He says there’s plenty of reason to now bail out cities and states facing financial crises as a result of the coronavirus pandemic, including New York — in fact, he writes in a New York Times op-ed, there are millions of reasons for the federal government to help:
“Imagine that cities and states were considered an industrial sector, like automobiles or airlines. Collectively, they employ about 23 million essential workers like teachers, police officers and firefighters. They contribute over $3 trillion to the nation’s gross domestic product.
“Now imagine that one of the most important industry players was New York City, which employs about 325,000 workers. They, along with the city’s 3.5 million private-sector workers in finance, entertainment, communications and other industries, add $1 trillion annually to the country’s gross domestic product.”
Only the federal government can help, Ravitch writes, and without such aid cities will have to cut essential workers, pile on debt that will strain their finances for years or, in some cases, declare bankruptcy. New York’s Metropolitan Transportation Authority, which Ravitch led four decades ago, warned Wednesday that it would have to slash subway and bus service by 40% and cut more than 9,300 jobs if it doesn’t get more federal aid.
President-elect Joe Biden will have to act quickly since President Trump and Senate Republicans have objected to providing aid to what they describe as badly run Democratic-led states, even as red states face plenty of financial pain as well. Senate Majority Leader Mitch McConnell (R-KY) this week said that Democratic demands for “a massive slush fund” for state and city governments have blocked bipartisan action on a Covid relief package.
Ravitch responds to such criticisms by arguing that New York and other cities are in trouble “not because of overspending, as Republicans imagine, but because of a badly managed pandemic.” And if Congress can help important industries hit hard by the virus outbreak, “it can also surely aid states and cities.”
Read the full op-ed, including Ravitch’s recommendations for steps Biden should take, at The New York Times.


thefiscaltimes--2020-11-19--White House Seeks Deal on Confederate Base Names: Report

Lawmakers are hoping to pass the annual defense authorization bill before the end of the year , but a provision that requires the Pentagon to remove the names of Confederate leaders from military bases could earn the legislation a veto from President Trump , who has expressed strong opposition to the idea , despite bipartisan support for the plan in Congress .
Sen. James Inhofe ( R-OK ) reportedly warned top lawmakers this week that the provision would have to be removed if they want the bill to pass .
However , The New York Times reported Thursday that White @ @ @ @ @ @ @ “ hinted ” that Trump would accept the base renaming provision in exchange for a repeal of certain legal protections currently in place for social media companies .
Specifically , Meadows said the White House is looking for a repeal of Section 230 of the Communications Decency Act of 1996 , which protects the likes of Facebook and Twitter from liability over writings posted by their users .
Democrats say the idea is unlikely to gain traction .
“ On its face , there ’ s issues of jurisdiction , lack of clarity @ @ @ @ @ @ @ when it says repeal Sec .
230 , and also it ’ s unclear if congressional Republicans support this , ” a Democratic aide told The Hill .

Lawmakers are hoping to pass the annual defense authorization bill before the end of the year, but a provision that requires the Pentagon to remove the names of Confederate leaders from military bases could earn the legislation a veto from President Trump, who has expressed strong opposition to the idea, despite bipartisan support for the plan in Congress.
Sen. James Inhofe (R-OK) reportedly warned top lawmakers this week that the provision would have to be removed if they want the bill to pass. However, The New York Times reported Thursday that White House Chief of Staff Mark Meadows has “hinted” that Trump would accept the base renaming provision in exchange for a repeal of certain legal protections currently in place for social media companies.
Specifically, Meadows said the White House is looking for a repeal of Section 230 of the Communications Decency Act of 1996, which protects the likes of Facebook and Twitter from liability over writings posted by their users.
Democrats say the idea is unlikely to gain traction. “On its face, there’s issues of jurisdiction, lack of clarity on what the White House actually means when it says repeal Sec. 230, and also it’s unclear if congressional Republicans support this,” a Democratic aide told The Hill.


thefiscaltimes--2020-11-19--250,000 Dead. Where Are Trump and Congress?

President Trump had no public events scheduled for Wednesday .
It was the same on Tuesday , when The Washington Post ’ s Philip Bump noted that the president ’ s public calendar has been empty for 10 of the 14 days since Election Day — make it 11 of 15 now — though Trump had held six events , played four rounds of golf and tweeted or retweeted some 400 times over that time while fuming over his election loss .
Trump also canceled plans to travel to his Mar-a-Lago home in Florida for Thanksgiving .
`` It feels @ @ @ @ @ @ @ House official told CNN .
Meanwhile , the coronavirus pandemic rages on , with new U.S. cases up 29 % over the past week , total confirmed cases now topping 11.4 million and 1,707 new Covid-19 deaths reported just on Tuesday .
Total U.S coronavirus-related deaths just surpassed 250,000 .
White House Press Secretary Kayleigh McEnany told “ Fox & Friends ” Wednesday that Trump is “ hard at work on Covid , among other issues ” and that the country would hear from him “ at the right moment.
” That lack @ @ @ @ @ @ @ legislation .
White House Chief of Staff Mark Meadows told reporters Wednesday that any additional discussions on a stimulus package would be up to Congress .
“ Obviously those discussions -- if they happen -- will be dictated by the House and the Senate , ” Meadows said , according to Bloomberg News .
“ We haven ’ t seen a real willingness by our House colleagues to look at that.
” Meadows , who met with Senate Majority Leader Mitch McConnell ( R-KY ) on Wednesday , said that getting a stimulus @ @ @ @ @ @ @ the president , ” but Bloomberg ’ s Erik Wasson and Laura Litvan note that the chief of staff ’ s remarks “ are further evidence that the White House is pulling back from the discussions after Trump ’ s loss to President-elect Joe Biden.
” Congress and the White House also have to approve new spending legislation to prevent a partial government shutdown after December 11 , when current federal funding expires .
Meadows told reporters that it ’ s a “ high priority ” to keep the government funded , but @ @ @ @ @ @ @ ” a deal will be reached .
McConnell again slams Democratic stimulus plan : House Speaker Nancy Pelosi ( D-CA ) and Senate Minority Leader Chuck Schumer ( D-NY ) wrote to McConnell on Tuesday , asking him to “ come to the table ” to negotiate coronavirus relief legislation .
The GOP leader reportedly has not responded to the letter , but he reiterated this week that he remains open to a “ targeted ” bill of about $ 500 billion and he again criticized the Democrat ’ s much larger bill @ @ @ @ @ @ @ people in blue states , but no second round of the Paycheck Protection Program ?
Those are their priorities ?
” McConnell said Tuesday .
He described Democrats ’ insistence on additional aid for state and local governments as a “ fixation on a massive slush fund … unlinked from COVID need.
” He followed up in additional remarks on the Senate floor Wednesday : “ The problem is that their proposal is a multi-trillion dollar laughingstock that never had a chance of becoming law.
” The bottom line : Lawmakers are reportedly @ @ @ @ @ @ @ We are on a good path to do that , ” Pelosi told reporters Wednesday .
But a stimulus deal , much like the president , remains out of sight .

President Trump had no public events scheduled for Wednesday. It was the same on Tuesday, when The Washington Post’s Philip Bump noted that the president’s public calendar has been empty for 10 of the 14 days since Election Day — make it 11 of 15 now — though Trump had held six events, played four rounds of golf and tweeted or retweeted some 400 times over that time while fuming over his election loss. Trump also canceled plans to travel to his Mar-a-Lago home in Florida for Thanksgiving.
"It feels like bunker mentality," one White House official told CNN.
Politico asked, “Is Trump done being president?”
Meanwhile, the coronavirus pandemic rages on, with new U.S. cases up 29% over the past week, total confirmed cases now topping 11.4 million and 1,707 new Covid-19 deaths reported just on Tuesday. Total U.S coronavirus-related deaths just surpassed 250,000.
White House Press Secretary Kayleigh McEnany told “Fox & Friends” Wednesday that Trump is “hard at work on Covid, among other issues” and that the country would hear from him “at the right moment.”
That lack of engagement apparently extends to coronavirus relief legislation. White House Chief of Staff Mark Meadows told reporters Wednesday that any additional discussions on a stimulus package would be up to Congress. “Obviously those discussions -- if they happen -- will be dictated by the House and the Senate,” Meadows said, according to Bloomberg News. “We haven’t seen a real willingness by our House colleagues to look at that.”
Meadows, who met with Senate Majority Leader Mitch McConnell (R-KY) on Wednesday, said that getting a stimulus deal “has been a priority for the president,” but Bloomberg’s Erik Wasson and Laura Litvan note that the chief of staff’s remarks “are further evidence that the White House is pulling back from the discussions after Trump’s loss to President-elect Joe Biden.”
Congress and the White House also have to approve new spending legislation to prevent a partial government shutdown after December 11, when current federal funding expires. Meadows told reporters that it’s a “high priority” to keep the government funded, but said he “can’t guarantee” a deal will be reached.
McConnell again slams Democratic stimulus plan: House Speaker Nancy Pelosi (D-CA) and Senate Minority Leader Chuck Schumer (D-NY) wrote to McConnell on Tuesday, asking him to “come to the table” to negotiate coronavirus relief legislation.
The GOP leader reportedly has not responded to the letter, but he reiterated this week that he remains open to a “targeted” bill of about $500 billion and he again criticized the Democrat’s much larger bill. “Huge tax cuts for rich people in blue states, but no second round of the Paycheck Protection Program? Those are their priorities?” McConnell said Tuesday. He described Democrats’ insistence on additional aid for state and local governments as a “fixation on a massive slush fund … unlinked from COVID need.” He followed up in additional remarks on the Senate floor Wednesday: “The problem is that their proposal is a multi-trillion dollar laughingstock that never had a chance of becoming law.”
The bottom line: Lawmakers are reportedly optimistic about passing funding legislation. “We are on a good path to do that,” Pelosi told reporters Wednesday. But a stimulus deal, much like the president, remains out of sight.


thefiscaltimes--2020-11-23--Biden Backs Pelosi on Massive Stimulus Bill as Former Treasury Heads Call for More Aid

Joe Biden is backing House Democrats in their effort to negotiate a multi-trillion-dollar coronavirus relief bill , according to a Biden representative Monday .
“ The President-elect fully supports the Speaker and Leader in their negotiations , '' transition spokesperson Andrew Bates said .
The statement from the Biden team came in response to a report Sunday in The New York Times that Biden ’ s economic advisers – worried about both a double-dip recession driven by the recent surge in coronavirus infections and the difficulty House Speaker Nancy Pelosi ( D-CA ) faces in reaching an agreement on a @ @ @ @ @ @ @ Senate Majority Leader Mitch McConnell ( R-KY ) – were pushing for a smaller package .
“ Many of the president-elect ’ s advisers have become convinced that deteriorating economic conditions from the renewed surge in Covid-19 infections and the looming threat of millions of Americans losing jobless benefits in December amid a wave of evictions and foreclosures require more urgent action before year ’ s end , ” the Times said .
“ That could mean moving at least part of the way toward Mr. McConnell ’ s offer of a $ @ @ @ @ @ @ @ ’ s pushback makes it clear that the incoming administration is sticking with its congressional allies , at least for now .
But it wouldn ’ t be a surprise to hear more about accepting some kind of compromise deal in the coming weeks , especially if the economic data take a turn for the worse , as many Biden advisers fear .
Some Democrats are already talking about the need to pass any relief bill they can get , even if it ’ s smaller than the one House Speaker Nancy Pelosi @ @ @ @ @ @ @ hope that we can get agreement , ” House Majority Leader Steny Hoyer ( D-MD ) told CQ-Roll Call .
“ It may not be everything that everybody wants but at least if we can get some significant relief to people .
And then we 're going to be here next year .
If we need to do other things , we 'll do other things.
” Former Treasury secretaries call for more stimulus – now : Although they didn ’ t specify a dollar figure , a bipartisan group of former economic @ @ @ @ @ @ @ lawmakers to pass a new coronavirus stimulus package as soon as possible .
Organized by the Aspen Institute 's Economic Strategy Group , the letter ’ s signatories include former Treasury secretaries Henry Paulson , Timothy Geithner , Robert Rubin and Larry Summers ; former Fed chair Ben Bernanke ; and former White House economic advisers Jason Furman , Austan Goolsbee , N. Gregory Mankiw and Douglas Holtz-Eakin .
“ Amidst a resurgence in COVID-19 caseloads and continuing economic devastation from the pandemic , we urge Congress to enact legislation that focuses on @ @ @ @ @ @ @ fiscal relief as quickly as possible and no later than the end of this calendar year , ” the group said , adding that the “ country and economy can not wait until 2021.
” Fighting the pandemic is the single most important issue , the letter said , and lawmakers should also provide additional assistance for individuals and families , state and local governments , and small businesses .
“ The CARES Act that was passed with bipartisan support in March 2020 provided necessary relief to millions of Americans and helped the @ @ @ @ @ @ @ ” the groups said .
“ Our nation ’ s leaders should act on another round of fiscal relief now .
”

Joe Biden is backing House Democrats in their effort to negotiate a multi-trillion-dollar coronavirus relief bill, according to a Biden representative Monday. “The President-elect fully supports the Speaker and Leader in their negotiations," transition spokesperson Andrew Bates said.
The statement from the Biden team came in response to a report Sunday in The New York Times that Biden’s economic advisers – worried about both a double-dip recession driven by the recent surge in coronavirus infections and the difficulty House Speaker Nancy Pelosi (D-CA) faces in reaching an agreement on a roughly $2 trillion relief bill with Senate Majority Leader Mitch McConnell (R-KY) – were pushing for a smaller package.
“Many of the president-elect’s advisers have become convinced that deteriorating economic conditions from the renewed surge in Covid-19 infections and the looming threat of millions of Americans losing jobless benefits in December amid a wave of evictions and foreclosures require more urgent action before year’s end,” the Times said. “That could mean moving at least part of the way toward Mr. McConnell’s offer of a $500 billion package.”
The Biden team’s pushback makes it clear that the incoming administration is sticking with its congressional allies, at least for now. But it wouldn’t be a surprise to hear more about accepting some kind of compromise deal in the coming weeks, especially if the economic data take a turn for the worse, as many Biden advisers fear.
Some Democrats are already talking about the need to pass any relief bill they can get, even if it’s smaller than the one House Speaker Nancy Pelosi is looking for. “I just hope that we can get agreement,” House Majority Leader Steny Hoyer (D-MD) told CQ-Roll Call. “It may not be everything that everybody wants but at least if we can get some significant relief to people. And then we're going to be here next year. If we need to do other things, we'll do other things.”
Former Treasury secretaries call for more stimulus – now: Although they didn’t specify a dollar figure, a bipartisan group of former economic officials released a letter Monday calling on lawmakers to pass a new coronavirus stimulus package as soon as possible. Organized by the Aspen Institute's Economic Strategy Group, the letter’s signatories include former Treasury secretaries Henry Paulson, Timothy Geithner, Robert Rubin and Larry Summers; former Fed chair Ben Bernanke; and former White House economic advisers Jason Furman, Austan Goolsbee, N. Gregory Mankiw and Douglas Holtz-Eakin.
“Amidst a resurgence in COVID-19 caseloads and continuing economic devastation from the pandemic, we urge Congress to enact legislation that focuses on the core measures necessary to provide additional fiscal relief as quickly as possible and no later than the end of this calendar year,” the group said, adding that the “country and economy cannot wait until 2021.”
Fighting the pandemic is the single most important issue, the letter said, and lawmakers should also provide additional assistance for individuals and families, state and local governments, and small businesses.
“The CARES Act that was passed with bipartisan support in March 2020 provided necessary
relief to millions of Americans and helped the economy rebound more quickly than expected,” the groups said. “Our nation’s leaders should act on another round of fiscal relief now.”


thefiscaltimes--2020-11-24--Trump Threatens to Veto Defense Bill

Trump Threatens to Veto Defense Bill

Despite reports last week that the White House was looking to make a deal on the issue , President Donald Trump is threatening to veto the National Defense Authorization Act if it includes a provision that would require renaming military bases that honor Confederate leaders , NBC News reported Monday .
The NDAA – the annual bill that specifies the annual budget and expenditures for the Department of Defense – has passed every year for the past 59 years .
A veto is unlikely , though , since Sen. Mitch McConnell generally avoids bringing a bill that can ’ t @ @ @ @ @ @ @ for a vote .
`` The president is not going to veto the defense bill and I can say that with almost absolute certainty , '' House Armed Services Chair Adam Smith ( D-WA ) said last week .
`` And the reason is because Mitch McConnell and Jim Inhofe are not going to send him a bill that he says he 's going to veto . ''
If McConnell refuses to force the issue and Trump sticks to his guns , that leaves two options .
Democrats could retreat and agree to @ @ @ @ @ @ @ fact that it had bipartisan support , while counting on President Biden to achieve the same end through executive action .
Alternatively , the NDAA could simply wait for the next Congress in January , forcing lawmakers to start from scratch on the must-pass legislation .

Despite reports last week that the White House was looking to make a deal on the issue, President Donald Trump is threatening to veto the National Defense Authorization Act if it includes a provision that would require renaming military bases that honor Confederate leaders, NBC News reported Monday.
The NDAA – the annual bill that specifies the annual budget and expenditures for the Department of Defense – has passed every year for the past 59 years.
A veto is unlikely, though, since Sen. Mitch McConnell generally avoids bringing a bill that can’t be signed into law to the floor for a vote. "The president is not going to veto the defense bill and I can say that with almost absolute certainty," House Armed Services Chair Adam Smith (D-WA) said last week. "And the reason is because Mitch McConnell and Jim Inhofe are not going to send him a bill that he says he's going to veto."
If McConnell refuses to force the issue and Trump sticks to his guns, that leaves two options. Democrats could retreat and agree to remove the renaming provision, despite the fact that it had bipartisan support, while counting on President Biden to achieve the same end through executive action. Alternatively, the NDAA could simply wait for the next Congress in January, forcing lawmakers to start from scratch on the must-pass legislation.


thefiscaltimes--2020-11-21--Mnuchin Defends Decision to End Emergency Lending Programs

Treasury Secretary Steven Mnuchin on Friday defended his decision to terminate more than $ 450 billion worth of emergency lending programs that extended credit to businesses and local governments amid the coronavirus crisis .
Mnuchin said that most of the money provided by Congress to the Federal Reserve Bank had not been spent and with the programs scheduled to cease operations at the end of the year , the money should be used instead to support small businesses and the unemployed .
“ The people who really need this support right now are not the rich corporations — it ’ @ @ @ @ @ @ @ that are unemployed .
Those are the people we need to help the next few months , '' Mnuchin said .
“ Let ’ s go use this money in parts of the economy that need it.
” Senate Majority Leader Mitch McConnell ( R-KY ) echoed Mnuchin Friday , saying that he supports the idea of repurposing various unused emergency funds , the value of which he pegged at $ 580 billion .
“ Congress should repurpose this money toward the kinds of urgent , important and targeted relief measures that Republicans @ @ @ @ @ @ @ , but which Democrats have repeatedly blocked with all-or-nothing demands , ” McConnell said in a statement .
Repurposing the funds may not be easy , however , given the rules of congressional budgeting .
The Congressional Budget Office assumed the money allocated by Congress to the Fed would be used for loans that would be repaid , creating no net loss or gain .
Using the funds for other purposes could generate different results .
Critics pounce : The Fed issued a statement late Thursday expressing its criticism of Mnuchin ’ s @ @ @ @ @ @ @ prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy , ” the bank said .
Democrats also expressed their disapproval , charging Mnuchin with undermining the incoming Biden administration .
“ Secretary Mnuchin is removing critical support from a weak economy against the Federal Reserve ’ s wishes .
This is economic sabotage , ” Oregon Sen. Ron Wyden , the ranking Democrat on the Senate Finance Committee , said in a statement .
@ @ @ @ @ @ @ in an attempt to inflict political pain on President-elect Biden.
” The Bloomberg editorial board said the Fed programs are still needed and should be extended , as expected : “ When the programs were created , the clear intent was to extend them as long as necessary , just as the Fed did with its emergency lending facilities during the 2008 financial crisis .
They remain necessary : With Covid-19 resurgent across the country , the economic outlook darkening , and Congress making no progress on added fiscal relief , it would @ @ @ @ @ @ @ remaining lifeline that companies and municipalities have.
” Carl Weinberg , chief economist at High Frequency Economics , told CNBC that Mnuchin ’ s decision was like removing the lifeboats from the Titanic .
“ I don ’ t think there is a good economic or public health or social reason to explain why they want to cut these programs at this particular time , so it has kind of got to be politics , doesn ’ t it ?
” Weinberg said .
“ These are the lifeboats for the economy , @ @ @ @ @ @ @ go when there is no place else to go , whether they are small business or medium-sized businesses , not the big ones that can go to the capital markets , but the little ones.
” Other critics expressed concern about the nature of the dispute .
“ This is a significant and disturbing breach at a critical time for the economy , ” Tony Fratto , who worked at the Treasury and the White House during the George W. Bush administration , told Bloomberg .
“ We need all the arms of @ @ @ @ @ @ @ re seeing a complete breakdown .
”

Treasury Secretary Steven Mnuchin on Friday defended his decision to terminate more than $450 billion worth of emergency lending programs that extended credit to businesses and local governments amid the coronavirus crisis.
Mnuchin said that most of the money provided by Congress to the Federal Reserve Bank had not been spent and with the programs scheduled to cease operations at the end of the year, the money should be used instead to support small businesses and the unemployed.
“The people who really need this support right now are not the rich corporations — it’s the small businesses; the people that are unemployed. Those are the people we need to help the next few months," Mnuchin said. “Let’s go use this money in parts of the economy that need it.”
Senate Majority Leader Mitch McConnell (R-KY) echoed Mnuchin Friday, saying that he supports the idea of repurposing various unused emergency funds, the value of which he pegged at $580 billion. “Congress should repurpose this money toward the kinds of urgent, important and targeted relief measures that Republicans have been trying to pass for months, but which Democrats have repeatedly blocked with all-or-nothing demands,” McConnell said in a statement.
Repurposing the funds may not be easy, however, given the rules of congressional budgeting. The Congressional Budget Office assumed the money allocated by Congress to the Fed would be used for loans that would be repaid, creating no net loss or gain. Using the funds for other purposes could generate different results.
Critics pounce: The Fed issued a statement late Thursday expressing its criticism of Mnuchin’s decision. “The Federal Reserve would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy,” the bank said.
Democrats also expressed their disapproval, charging Mnuchin with undermining the incoming Biden administration. “Secretary Mnuchin is removing critical support from a weak economy against the Federal Reserve’s wishes. This is economic sabotage,” Oregon Sen. Ron Wyden, the ranking Democrat on the Senate Finance Committee, said in a statement. “Secretary Mnuchin is salting the earth in an attempt to inflict political pain on President-elect Biden.”
The Bloomberg editorial board said the Fed programs are still needed and should be extended, as expected: “When the programs were created, the clear intent was to extend them as long as necessary, just as the Fed did with its emergency lending facilities during the 2008 financial crisis. They remain necessary: With Covid-19 resurgent across the country, the economic outlook darkening, and Congress making no progress on added fiscal relief, it would be profoundly irresponsible to remove the one remaining lifeline that companies and municipalities have.”
Carl Weinberg, chief economist at High Frequency Economics, told CNBC that Mnuchin’s decision was like removing the lifeboats from the Titanic. “I don’t think there is a good economic or public health or social reason to explain why they want to cut these programs at this particular time, so it has kind of got to be politics, doesn’t it?” Weinberg said. “These are the lifeboats for the economy, these are the places for companies to go when there is no place else to go, whether they are small business or medium-sized businesses, not the big ones that can go to the capital markets, but the little ones.”
Other critics expressed concern about the nature of the dispute. “This is a significant and disturbing breach at a critical time for the economy,” Tony Fratto, who worked at the Treasury and the White House during the George W. Bush administration, told Bloomberg. “We need all the arms of government working together and instead we’re seeing a complete breakdown.”


thefiscaltimes--2020-11-21--Virus Surge Could Wallop the Economy Again

Analysts at JPMorgan Chase are predicting an economic contraction in the first quarter of 2021 , driven by the fall surge of Covid-19 and new restrictions on businesses imposed by state and local governments .
The U.S. economy is projected to shrink by 1 % in the first three months of the new year , the analysts said , following estimated growth of 2.8 % in the fourth quarter of 2020 and recorded growth of 33.1 % in the second quarter .
“ While the economy powered through the July wave , at that time the reopening of the economy @ @ @ @ @ @ @ ” the JPMorgan economists wrote .
“ The economy no longer has that tailwind ; instead it now faces the headwind of increasing restrictions on activity .
The holiday season — from Thanksgiving through New Year ’ s — threatens a further increase in cases.
” Calling the outlook for the winter “ grim , ” the analysts said the coronavirus will be an unavoidable factor for the economy in the months ahead .
“ One thing that is unlikely to change between 2020 and 2021 is that the virus will continue to @ @ @ @ @ @ @ wrote .
“ Case counts in the latest wave are easily surpassing the March and July waves.
” Most Wall Street economists are still predicting modest growth in the first quarter , although their outlooks may change as the severity of the coronavirus surge becomes apparent .
Dallas Fed President Robert Kaplan highlighted the possibility of negative growth Friday .
“ We ’ ll have to see what the fourth quarter looks like , ” Kaplan told Bloomberg News .
“ It is possible we could have negative growth if this resurgence gets @ @ @ @ @ @ @ ” Benefits cliff will be a factor : “ The economy will be operating without a safety net in January , ” Bank of America economist Joseph Song wrote in a note to clients Friday .
As we ’ ve told you previously , multiple emergency pandemic assistance programs established by Congress in March will expire at the end of the year , and Song says the sudden withdrawal of fiscal support will be felt in the broader economy .
The loss of emergency unemployment benefits on December 26 could knock 1.5 percentage @ @ @ @ @ @ @ estimated .
The loss in aggregate income from the unemployment benefits cliff would come to roughly $ 39 billion , while another $ 8 billion in income could be lost as workers exhaust their state benefits during the first quarter .
The termination of other relief programs – including the moratorium on evictions and the suspension of student loan payments – will add to the headwinds , Song said .
Congress could eliminate the drag , however , by passing another stimulus bill , and Song expects to see a spending package worth @ @ @ @ @ @ @ trillion soon after Joe Biden is sworn in , setting the stage for positive GDP growth in the second quarter .
White House insists on a rosier outlook : White House chief economic adviser Larry Kudlow said Friday that the economy is not slowing down in the face of a resurgent virus .
“ Housing is booming , consumer spending is booming , automobiles are booming , just booming , ” Kudlow told Fox News .
“ It is a strong V-shaped recovery ... there are pandemic risks , virus hotspot risks , @ @ @ @ @ @ @ saying is what we know on jobs and housing and retailing and cars and other areas , the economy is very hot.
” Treasury Secretary Steven Mnuchin was a bit less optimistic .
“ What the economy needs is now more fiscal support , ” he told CNBC Friday , while pledging to work with lawmakers to hammer out a targeted coronavirus relief bill now that the election is over .
“ I can tell you Mark Meadows and I will be speaking with Mitch McConnell and Kevin McCarthy this morning , ” @ @ @ @ @ @ @ going to come up with a plan to sit down with Pelosi and Schumer and try to get a targeted bill done for the people that really need it .
And hopefully the Democrats will work with us .
”

Analysts at JPMorgan Chase are predicting an economic contraction in the first quarter of 2021, driven by the fall surge of Covid-19 and new restrictions on businesses imposed by state and local governments.
The U.S. economy is projected to shrink by 1% in the first three months of the new year, the analysts said, following estimated growth of 2.8% in the fourth quarter of 2020 and recorded growth of 33.1% in the second quarter.
“While the economy powered through the July wave, at that time the reopening of the economy provided a powerful tailwind to growth,” the JPMorgan economists wrote. “The economy no longer has that tailwind; instead it now faces the headwind of increasing restrictions on activity. The holiday season — from Thanksgiving through New Year’s — threatens a further increase in cases.”
Calling the outlook for the winter “grim,” the analysts said the coronavirus will be an unavoidable factor for the economy in the months ahead. “One thing that is unlikely to change between 2020 and 2021 is that the virus will continue to dominate the economic outlook,” they wrote. “Case counts in the latest wave are easily surpassing the March and July waves.”
Most Wall Street economists are still predicting modest growth in the first quarter, although their outlooks may change as the severity of the coronavirus surge becomes apparent. Dallas Fed President Robert Kaplan highlighted the possibility of negative growth Friday. “We’ll have to see what the fourth quarter looks like,” Kaplan told Bloomberg News. “It is possible we could have negative growth if this resurgence gets bad enough and mobility falls off enough.”
Benefits cliff will be a factor: “The economy will be operating without a safety net in January,” Bank of America economist Joseph Song wrote in a note to clients Friday. As we’ve told you previously, multiple emergency pandemic assistance programs established by Congress in March will expire at the end of the year, and Song says the sudden withdrawal of fiscal support will be felt in the broader economy.
The loss of emergency unemployment benefits on December 26 could knock 1.5 percentage points off of GDP growth, Song estimated. The loss in aggregate income from the unemployment benefits cliff would come to roughly $39 billion, while another $8 billion in income could be lost as workers exhaust their state benefits during the first quarter.
The termination of other relief programs – including the moratorium on evictions and the suspension of student loan payments – will add to the headwinds, Song said. Congress could eliminate the drag, however, by passing another stimulus bill, and Song expects to see a spending package worth between $500 billion and $1 trillion soon after Joe Biden is sworn in, setting the stage for positive GDP growth in the second quarter.
White House insists on a rosier outlook: White House chief economic adviser Larry Kudlow said Friday that the economy is not slowing down in the face of a resurgent virus. “Housing is booming, consumer spending is booming, automobiles are booming, just booming,” Kudlow told Fox News. “It is a strong V-shaped recovery ... there are pandemic risks, virus hotspot risks, I get that. All I'm saying is what we know on jobs and housing and retailing and cars and other areas, the economy is very hot.”
Treasury Secretary Steven Mnuchin was a bit less optimistic. “What the economy needs is now more fiscal support,” he told CNBC Friday, while pledging to work with lawmakers to hammer out a targeted coronavirus relief bill now that the election is over.
“I can tell you Mark Meadows and I will be speaking with Mitch McConnell and Kevin McCarthy this morning,” Mnuchin said. “And we are going to come up with a plan to sit down with Pelosi and Schumer and try to get a targeted bill done for the people that really need it. And hopefully the Democrats will work with us.”


thefiscaltimes--2020-11-25--What Biden’s Pick of Yellen for Treasury Means for the Economy and Stimulus

Janet Yellen has had a long and distinguished career as an economist , from the halls of academia to the White House to the Federal Reserve .
Her next job , as Neil Irwin suggests at The Upshot , may be her toughest one yet .
Yellen is reported to be President-elect Joe Biden ’ s pick for Treasury secretary , meaning she will have a key role in helping the incoming administration fight the economic devastation wrought by the coronavirus pandemic .
“ As Treasury secretary , Ms Yellen will be forced to enter the political fray more than @ @ @ @ @ @ @ Politi and Colby Smith write in the Financial Times .
“ Although she faced frequent grillings from Congress as a Fed official , including her own confirmation hearing , she will now have to negotiate with recalcitrant Republicans measures to boost the economy , and defend them to a deeply polarised American electorate.
” A pioneering pick : Yellen , 74 , is currently an economist at the Brookings Institution .
A pioneer throughout her career , she would be the first woman to head the Treasury Department since it was created in @ @ @ @ @ @ @ the Federal Reserve from 2014 to 2018 — the first woman ever to hold that job , too — and served as head of President Bill Clinton ’ s Council of Economic Advisers in the late 1990s .
Yellen would be the first person ever to serve in the top posts at the White House Council of Economic Advisers , the Federal Reserve and Treasury .
“ If confirmed by the Senate as Treasury secretary , Janet Yellen will be among the most accomplished people to take over the big office at 1500 @ @ @ @ @ @ @ the department , ” Irwin writes .
“ Few people in any era have served at the highest levels of economic policymaking for as long , and with as much distinction.
” Yellen ’ s resume is somewhat unusual for a Treasury chief .
“ Her pre-government background came largely as an academic economist and monetary policy expert .
The top Treasury slot often goes to people — until now all men — with extensive corporate backgrounds and high-profile international experience , ” Politico ’ s Ben White notes .
As Treasury secretary @ @ @ @ @ @ @ middle of political battles that she could sidestep as Fed chief .
But her expected selection was met with widespread praise , with former Trump economic adviser Gary Cohn and Democratic Sen. Elizabeth Warren of Massachusetts among those voicing their approval .
Yellen ’ s selection is seen as an effort by Biden to bridge differences within the Democratic Party , even as some on the left have criticized Yellen for starting to raise interest rates while at the Fed .
The president-elect last week said his Treasury pick was “ someone who @ @ @ @ @ @ @ the Democratic Party , from the progressive to the moderate coalitions.
” Markets also cheered the selection .
Biden ’ s choice “ was seen as a win for markets , since the former Federal Reserve chair should focus on fixing the economy rather than the progressive Democratic agenda feared by some investors , ” CNBC ’ s Patti Domm says .
Pushing for more stimulus : It ’ s not clear yet what role Yellen might take in negotiations with Congress over additional coronavirus relief efforts , but she has become a @ @ @ @ @ @ @ stimulus to address the pandemic and its economic fallout .
“ In her time in the Clinton administration , Yellen was supportive of efforts to balance the federal budget , but she has become an advocate of spending more money now that interest rates are at historic lows , making it cheap for the U.S. government to borrow money , ” The Washington Post ’ s Jeff Stein and Rachel Siegel report .
A New York Times piece she co-authored in August month called on lawmakers to step up : “ When unemployment @ @ @ @ @ @ @ low , as they both are now , the economy needs more fiscal spending to support hiring.
” The Financial Times reports that Yellen delivered the same message in a conversation with Biden and his running mate , Kamala Harris , that month , telling the Democratic candidates that there was enough fiscal space for additional investment .
She has since reiterated her call for more stimulus spending .
“ This is not a good time to have fiscal policy switch from being accommodative to creating a drag , ” Yellen told the @ @ @ @ @ @ @ s what happened [ last decade ] , and it retarded the recovery.
” Yellen may try to undo Mnuchin ’ s latest move : Analysts expect that Yellen ’ s long history at the Fed will lead to close collaboration with Fed chief Jerome Powell and other monetary policymakers .
“ The pandemic response has been organized as a joint effort between the Treasury , which is putting up billions of dollars in capital to support debt markets , and the Fed , which administers the programs and lends billions more from @ @ @ @ @ @ @ them more powerful , ” Irwin writes at The Upshot .
“ But there have been clear schisms thus far .
The Fed has been more inclined to structure the programs to help the economy more but with greater risk that the Treasury will lose money , while the Trump Treasury has been more cautious.
” Yellen may be open to acting more aggressively .
“ Given Yellen ’ s background at the Fed , ” Eric Stein , chief investment officer for fixed income at Eaton Vance , told the FT , @ @ @ @ @ @ @ in line with the Fed and she will want the Fed to be able to provide as much credit to various sectors of the economy as possible.
” ( Her nomination , we should note , is already leading some to question the future of the Fed ’ s independence from the Treasury . )
Yellen may also look to reverse Treasury Secretary Steven Mnuchin ’ s decision to let certain emergency lending programs expire at the end of the year , a decision that Powell and others objected to , with some @ @ @ @ @ @ @ to hamstring the incoming Biden administration .
“ Though Yellen , if confirmed , could at least partially reopen them , the terms of the CARES Act — the massive spending program approved by Congress at the onset of the pandemic in March — potentially limit the secretary ’ s authority to send more funds to cover losses from Fed loans after the end of the year , ” Politico ’ s Victoria Guida writes .
Mnuchin reportedly is set to move $ 455 billion in unspent coronavirus relief funds from the Treasury @ @ @ @ @ @ @ the General Fund , meaning that Yellen would need authorization from Congress to tap into the money .
“ Any move by Yellen to take the money back out of the general account and into the stabilization fund would likely trigger a wave of Republican protests -- a battle she may prefer to avoid early in her tenure , ” Bloomberg ’ s Saleha Mohsin reports .
Sen. Pat Toomey ( R-PA ) , likely to become chairman of the Senate Banking Committee , signaled in a tweet Tuesday that Yellen should be @ @ @ @ @ @ @ lending programs without congressional action .
The bottom line : Yellen is widely respected , but her calls for more stimulus are still likely to be met with Republican resistance that tests her ability to navigate heated political negotiations .

Janet Yellen has had a long and distinguished career as an economist, from the halls of academia to the White House to the Federal Reserve. Her next job, as Neil Irwin suggests at The Upshot, may be her toughest one yet. Yellen is reported to be President-elect Joe Biden’s pick for Treasury secretary, meaning she will have a key role in helping the incoming administration fight the economic devastation wrought by the coronavirus pandemic.
“As Treasury secretary, Ms Yellen will be forced to enter the political fray more than in her previous roles,” James Politi and Colby Smith write in the Financial Times. “Although she faced frequent grillings from Congress as a Fed official, including her own confirmation hearing, she will now have to negotiate with recalcitrant Republicans measures to boost the economy, and defend them to a deeply polarised American electorate.”
A pioneering pick: Yellen, 74, is currently an economist at the Brookings Institution. A pioneer throughout her career, she would be the first woman to head the Treasury Department since it was created in 1789. She was the chair of the Federal Reserve from 2014 to 2018 — the first woman ever to hold that job, too — and served as head of President Bill Clinton’s Council of Economic Advisers in the late 1990s. Yellen would be the first person ever to serve in the top posts at the White House Council of Economic Advisers, the Federal Reserve and Treasury.
“If confirmed by the Senate as Treasury secretary, Janet Yellen will be among the most accomplished people to take over the big office at 1500 Pennsylvania Avenue in the 231-year history of the department,” Irwin writes. “Few people in any era have served at the highest levels of economic policymaking for as long, and with as much distinction.”
Yellen’s resume is somewhat unusual for a Treasury chief. “Her pre-government background came largely as an academic economist and monetary policy expert. The top Treasury slot often goes to people — until now all men — with extensive corporate backgrounds and high-profile international experience,” Politico’s Ben White notes. As Treasury secretary, Yellen will be thrust into the middle of political battles that she could sidestep as Fed chief.
But her expected selection was met with widespread praise, with former Trump economic adviser Gary Cohn and Democratic Sen. Elizabeth Warren of Massachusetts among those voicing their approval. Yellen’s selection is seen as an effort by Biden to bridge differences within the Democratic Party, even as some on the left have criticized Yellen for starting to raise interest rates while at the Fed. The president-elect last week said his Treasury pick was “someone who will be accepted by all elements of the Democratic Party, from the progressive to the moderate coalitions.”
Markets also cheered the selection. Biden’s choice “was seen as a win for markets, since the former Federal Reserve chair should focus on fixing the economy rather than the progressive Democratic agenda feared by some investors,” CNBC’s Patti Domm says.
Pushing for more stimulus: It’s not clear yet what role Yellen might take in negotiations with Congress over additional coronavirus relief efforts, but she has become a leading advocate urging lawmakers to provide more stimulus to address the pandemic and its economic fallout.
“In her time in the Clinton administration, Yellen was supportive of efforts to balance the federal budget, but she has become an advocate of spending more money now that interest rates are at historic lows, making it cheap for the U.S. government to borrow money,” The Washington Post’s Jeff Stein and Rachel Siegel report.
A New York Times piece she co-authored in August month called on lawmakers to step up: “When unemployment is exceptionally high and inflation is historically low, as they both are now, the economy needs more fiscal spending to support hiring.”
The Financial Times reports that Yellen delivered the same message in a conversation with Biden and his running mate, Kamala Harris, that month, telling the Democratic candidates that there was enough fiscal space for additional investment. She has since reiterated her call for more stimulus spending. “This is not a good time to have fiscal policy switch from being accommodative to creating a drag,” Yellen told the Journal in October. “That’s what happened [last decade], and it retarded the recovery.”
Yellen may try to undo Mnuchin’s latest move: Analysts expect that Yellen’s long history at the Fed will lead to close collaboration with Fed chief Jerome Powell and other monetary policymakers.
“The pandemic response has been organized as a joint effort between the Treasury, which is putting up billions of dollars in capital to support debt markets, and the Fed, which administers the programs and lends billions more from its own limitless balance sheet to make them more powerful,” Irwin writes at The Upshot. “But there have been clear schisms thus far. The Fed has been more inclined to structure the programs to help the economy more but with greater risk that the Treasury will lose money, while the Trump Treasury has been more cautious.”
Yellen may be open to acting more aggressively. “Given Yellen’s background at the Fed,” Eric Stein, chief investment officer for fixed income at Eaton Vance, told the FT, “her views will be very much in line with the Fed and she will want the Fed to be able to provide as much credit to various sectors of the economy as possible.” (Her nomination, we should note, is already leading some to question the future of the Fed’s independence from the Treasury.)
Yellen may also look to reverse Treasury Secretary Steven Mnuchin’s decision to let certain emergency lending programs expire at the end of the year, a decision that Powell and others objected to, with some criticizing it as a political maneuver meant to hamstring the incoming Biden administration. “Though Yellen, if confirmed, could at least partially reopen them, the terms of the CARES Act — the massive spending program approved by Congress at the onset of the pandemic in March — potentially limit the secretary’s authority to send more funds to cover losses from Fed loans after the end of the year,” Politico’s Victoria Guida writes.
Mnuchin reportedly is set to move $455 billion in unspent coronavirus relief funds from the Treasury Department’s Exchange Stabilization Fund into the General Fund, meaning that Yellen would need authorization from Congress to tap into the money. “Any move by Yellen to take the money back out of the general account and into the stabilization fund would likely trigger a wave of Republican protests -- a battle she may prefer to avoid early in her tenure,” Bloomberg’s Saleha Mohsin reports.
Sen. Pat Toomey (R-PA), likely to become chairman of the Senate Banking Committee, signaled in a tweet Tuesday that Yellen should be cautious about looking to restart the emergency lending programs without congressional action.
The bottom line: Yellen is widely respected, but her calls for more stimulus are still likely to be met with Republican resistance that tests her ability to navigate heated political negotiations.


thefiscaltimes--2020-11-24--Most Americans Say the Country Needs More Covid Aid

A substantial majority of Americans think more Covid-19 aid from the federal government is needed , according to new poll data from Pew Research .
In a survey of U.S. adults conducted from November 12 to November 17 , 80 % of respondents agreed that another economic assistance package is necessary , compared to 19 % who said it was not .
And most ( 85 % ) of those who support a new round of aid said the relief bill is needed as soon as possible , before President-elect Biden is sworn into office .
“ Sizable majorities across @ @ @ @ @ @ @ more economic assistance is needed , ” Pew said , though there were notable partisan differences .
While a majority of Trump voters ( 61 % ) called for more aid , support was much higher among Biden voters ( 94 % ) .
There were significant differences according to income level , as well , at least for Republicans .
Only half ( 49 % ) of high-income Trump voters supported more aid , compared to 78 % of low-income Trump voters .
More than 90 % of Biden supporters supported more @ @ @ @ @ @ @

A substantial majority of Americans think more Covid-19 aid from the federal government is needed, according to new poll data from Pew Research.
In a survey of U.S. adults conducted from November 12 to November 17, 80% of respondents agreed that another economic assistance package is necessary, compared to 19% who said it was not. And most (85%) of those who support a new round of aid said the relief bill is needed as soon as possible, before President-elect Biden is sworn into office.
“Sizable majorities across nearly all demographic and income categories say more economic assistance is needed,” Pew said, though there were notable partisan differences. While a majority of Trump voters (61%) called for more aid, support was much higher among Biden voters (94%).
There were significant differences according to income level, as well, at least for Republicans. Only half (49%) of high-income Trump voters supported more aid, compared to 78% of low-income Trump voters. More than 90% of Biden supporters supported more aid, at all income levels.