Economists have warned that the steep decline in fiscal support from Congress and the impact of a second wave of coronavirus infections could cause deep long-term damage to the U. S. economy that could take years to reverse. On a non-annualized basis, GDP shrunk roughly 9. 5 percent between the first and second quarters of 2020. The European Union could use its seven-year budgetary plan to tackle inequalities that have been exacerbated by the COVID-19 pandemic, leading European thinktank Bruegel says. The Act establishes a carbon dioxide cap-and-trade program to reduce emissions from power plants, in compliance with the Regional Greenhouse Gas Initiative.
If you glance at market headlines today, you might have a pretty positive reaction. You’ll see that the NASDAQ Compositive Index is up over 17% for the year. The S&P is basically flat, which is a great comeback from where it was a few short months ago. The Fed announced the new infusion of cash on the same day the U. S. reported applications for unemployment benefits last week reached a staggering 6. 6 million. That means more than one in 10 workers have lost their jobs in just the past three weeks to the coronavirus outbreak. The government’s pay protection plan for small businesses is off to a rocky start.
A handful of well performing stocks are pushing the sector performance up over 16% year to date. These few technology stocks have such a large market cap that their return numbers are driving what we see in the overall indices.
The Department of Environmental Quality will establish and operate an auction program to sell allowances into a market-based trading program. The Act sets an energy efficiency resource standard, requiring third party review of whether energy companies meet savings goals. The Act requires Dominion Energy Virginia to be 100 percent carbon-free by 2045 and Appalachian Power to be 100 percent carbon-free by 2050. It requires nearly all coal-fired plants to close by the end of 2024.
The banks have said that the government has not made clear how they should process such loans, even what forms are required. The Main Street lending program “will make a significant difference for the 40, 000 medium-sized business that employ 35 million Americans, ” Treasury Secretary Steven Mnuchin said. In addition, the Fed activated a loan program for municipal governments, as well as additional support for the Paycheck Protection Program, which the Small Business Administration rolled out last week. The program provides loans to businesses with fewer than 500 employees. Federal Reserve Chairman Jerome Powell said the Fed’s role was to “provide as much relief and stability as we can during this period of constrained economic activity. ” The Fed said Thursday that it is activating a Main Street Business Lending Program authorized by the CARES Act, the largest economic relief package ever passed by Congress.
Angela Walsh, a professor of law at St . Mary’s University of Law, called for greater circumspection and oversight with blockchain technologies. With so much at stake, global regulators must identify and create systems that mitigate internal and external operating risks. Those systems, she said, should offer security, reliability, scalability, and recovery checks from disruptions. To illustrate the enduring value of Wall Street derivatives contracts in redistributing risk and catalyzing socioeconomic growth and development, Merton offered several examples from the 1980s to the present. The first—interest rate swaps by banks in the 1980s—permanently eliminated their interest rate risks overnight. “Boy, did I get lucky, ” mused Merton, who had come of age as a young economist during the decade. “It turned out that because of all this innovation, to do finance science you needed models and computer technology, ” he explained.