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Here’s What We Know So Far About the Aid Bill: Live Business Updates Here’s What We Know So Far About the Aid Bill: Live Business Updates
(32 minutes later)
President Trump is a ratings hit, and some journalists and public health experts say that could be a dangerous thing.
Since reviving the daily White House briefing — a practice abandoned last year by an administration that bristles at outside scrutiny — Mr. Trump and his coronavirus updates have attracted an average audience of 8.5 million on CNN, Fox News, and MSNBC, roughly the viewership of the season finale of “The Bachelor.” On Monday, nearly 12.2 million people watched Mr. Trump’s briefing on cable news, according to Nielsen — “Monday Night Football” numbers.
The veteran anchor Ted Koppel said on Wednesday that television news executives had forgotten a crucial distinction of their profession. “Training a camera on a live event, and just letting it play out, is technology, not journalism; journalism requires editing and context,” he wrote in an email.
The Rescue BillThe Rescue Bill
As part of the country’s biggest emergency spending plan, American lawmakers have agreed to provide direct payments of up to $1,200 to certain taxpayers in an attempt to create a safety net for those whose jobs and businesses are affected by the pandemic.As part of the country’s biggest emergency spending plan, American lawmakers have agreed to provide direct payments of up to $1,200 to certain taxpayers in an attempt to create a safety net for those whose jobs and businesses are affected by the pandemic.
But it sounds like the checks could take a while to get to bank accounts.But it sounds like the checks could take a while to get to bank accounts.
The massive legislation isn’t finished, so only the broad outlines are known. The Senate is expected to vote on the bill Wednesday.The massive legislation isn’t finished, so only the broad outlines are known. The Senate is expected to vote on the bill Wednesday.
But Democratic aides in the Senate said on Wednesday that eligible Americans with direct-deposit bank account information on file with the Internal Revenue Service for tax refunds — about 70 million people — should see their payments arrive within a few weeks of the bill being signed into law.But Democratic aides in the Senate said on Wednesday that eligible Americans with direct-deposit bank account information on file with the Internal Revenue Service for tax refunds — about 70 million people — should see their payments arrive within a few weeks of the bill being signed into law.
Eligible Americans who do not have such information on file, and thus will be waiting for a check in the mail from the I.R.S., will need to wait up to four months to receive one, the aides said.Eligible Americans who do not have such information on file, and thus will be waiting for a check in the mail from the I.R.S., will need to wait up to four months to receive one, the aides said.
The latest version of the bill, which has not been finalized, notes that the Treasury Secretary should make payments “as rapidly as possible.”The latest version of the bill, which has not been finalized, notes that the Treasury Secretary should make payments “as rapidly as possible.”
The Rescue BillThe Rescue Bill
If you want to shut down an economy to fight a pandemic without driving millions of people and businesses into bankruptcy, you need the government to cut some checks. The coronavirus response deal that congressional leaders struck early Wednesday will get a lot of checks in the mail, but they’ll soothe only a few months of financial pain.If you want to shut down an economy to fight a pandemic without driving millions of people and businesses into bankruptcy, you need the government to cut some checks. The coronavirus response deal that congressional leaders struck early Wednesday will get a lot of checks in the mail, but they’ll soothe only a few months of financial pain.
The legislation, which is expected to be enacted within days, is the biggest fiscal stimulus package in modern American history, and more than double the size of the roughly $800 billion stimulus package that Congress passed in 2009 to ease the Great Recession.The legislation, which is expected to be enacted within days, is the biggest fiscal stimulus package in modern American history, and more than double the size of the roughly $800 billion stimulus package that Congress passed in 2009 to ease the Great Recession.
Among the items in the bill are:Among the items in the bill are:
$350 billion in loans for small businesses to help bridge their expenses for up to 10 weeks. Firms would not need to repay up to eight weeks of the loans if they refrain from laying off employees, or move by June to rehire workers they have already laid off. Supporters of the measure say those loans, if rapidly deployed, could help thousands of firms survive, at least temporarily. $350 billion in loans for small businesses to help bridge their expenses for up to 10 weeks. Firms would not need to repay up to eight weeks of the loans if they refrain from laying off employees, or move by June to rehire workers they have already laid off.
$500 billion in aid to airlines and other large corporations that have been hurt by the cratering of consumer demand amid the crisis. Much of the money would be used to backstop loans and other assistance that the Federal Reserve said it plans to extend to companies.$500 billion in aid to airlines and other large corporations that have been hurt by the cratering of consumer demand amid the crisis. Much of the money would be used to backstop loans and other assistance that the Federal Reserve said it plans to extend to companies.
A $1,200 payment for each adult, and $500 per child, in households that earn up to $75,000 per year for individuals or $150,000 for couples. The assistance phases out for people who earn more.A $1,200 payment for each adult, and $500 per child, in households that earn up to $75,000 per year for individuals or $150,000 for couples. The assistance phases out for people who earn more.
Economists hailed the emerging agreement as a good start, one that works on multiple fronts to keep money flowing through the parts of the economy that have been suddenly rendered inactive. But some warned that it may not actually be large enough, given the enormous economic challenge the United States faces today.Economists hailed the emerging agreement as a good start, one that works on multiple fronts to keep money flowing through the parts of the economy that have been suddenly rendered inactive. But some warned that it may not actually be large enough, given the enormous economic challenge the United States faces today.
“Much of the small business community is facing an extinction-level event,” said John Lettieri, the chief of the Economic Innovation Group think tank in Washington, who pushed heavily for a package of small business loans in the agreement. “Will this bill help? Absolutely. But the lending capacity needed to prevent mass closures and layoffs could be four or five times larger than what is being provided.”“Much of the small business community is facing an extinction-level event,” said John Lettieri, the chief of the Economic Innovation Group think tank in Washington, who pushed heavily for a package of small business loans in the agreement. “Will this bill help? Absolutely. But the lending capacity needed to prevent mass closures and layoffs could be four or five times larger than what is being provided.”
Trading on Wall Street was volatile on Wednesday, as investors started sizing up a $2 trillion coronavirus rescue package designed to shore up the American economy.Trading on Wall Street was volatile on Wednesday, as investors started sizing up a $2 trillion coronavirus rescue package designed to shore up the American economy.
The S&P 500 drifted back and forth between gains and losses. In Europe, major benchmarks were mostly higher. The S&P 500 dipped in early trading before climbing more than 3 percent. In Europe, major benchmarks were mostly higher.
Early gains in shares of companies expected benefit from government help — like Boeing, American Airlines and Carnival Corp. — were also off their highest levels of the day. Boeing was still up 15 percent, however, helping to bolster the Dow Jones industrial average. Some of the companies expected to benefit from government help led the gains. Boeing was up nearly 30 percent, helping lift the Dow Jones industrial average by more than 5 percent; American Airlines jumped more than 15 percent and Carnival Corp. jumped more than 14 percent. All three had logged double-digit gains on Tuesday as talks on the package progressed.
On Tuesday, stocks on Wall Street had their best day since 2008 on expectations of the stimulus deal. Democratic and Republican leaders in the Senate finally came to agreement in the early hours of the day Wednesday.On Tuesday, stocks on Wall Street had their best day since 2008 on expectations of the stimulus deal. Democratic and Republican leaders in the Senate finally came to agreement in the early hours of the day Wednesday.
Governments elsewhere are also laying out plans to help. On Monday, Germany prepared an emergency budget and rescue fund for companies that includes state-supported loans. European Union leaders are working on additional measures to help loosen up money for some countries to help soften the economic blow of the virus.Governments elsewhere are also laying out plans to help. On Monday, Germany prepared an emergency budget and rescue fund for companies that includes state-supported loans. European Union leaders are working on additional measures to help loosen up money for some countries to help soften the economic blow of the virus.
Though investors have welcomed the plans, few are willing to conclusively say that the worst of the market sell-off is over.Though investors have welcomed the plans, few are willing to conclusively say that the worst of the market sell-off is over.
In the United States, widespread social distancing measures put in place to control the spread of the coronavirus have hammered consumer spending, the heart of the American economy. Economists are expecting almost unthinkable declines in the gross domestic product in the second quarter. Analysts at Capital Economics said on Wednesday that they now expect U.S. growth to fall 40 percent in the second quarter at an annualized pace, as the unemployment rate jumps to 12 percent, higher than its 10 percent peak in 2009.In the United States, widespread social distancing measures put in place to control the spread of the coronavirus have hammered consumer spending, the heart of the American economy. Economists are expecting almost unthinkable declines in the gross domestic product in the second quarter. Analysts at Capital Economics said on Wednesday that they now expect U.S. growth to fall 40 percent in the second quarter at an annualized pace, as the unemployment rate jumps to 12 percent, higher than its 10 percent peak in 2009.
Markets have been volatile in recent weeks, seesawing on sentiment that has veered between hope that governments around the world will take strong measures to stem economic losses from the spread of the coronavirus, and fear that policymakers are not making bold enough decisions.
“Encouragingly, recent new lows in stocks have been accompanied by either sideways or even lower volatility, indicating markets are starting to become more comfortable with the potential range of outcomes we face,” Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note to investors.
THE RESCUE BILLTHE RESCUE BILL
One of the most contentious questions dogging talks over the $2 trillion economic stabilization bill was over who would be in charge of a $500 billion “slush fund” with few strings attached, and how to ensure that such a sweeping bailout is administered fairly and without preferential treatment.One of the most contentious questions dogging talks over the $2 trillion economic stabilization bill was over who would be in charge of a $500 billion “slush fund” with few strings attached, and how to ensure that such a sweeping bailout is administered fairly and without preferential treatment.
The final bill is expected to include the appointment of a new special inspector general to oversee the disbursement of funds to companies and ensure they qualify, according to a congressional aide. It’s also will include a restriction that prohibit businesses controlled by the president, vice president, members of Congress and heads of executive departments from receiving loans or investments from Treasury programs. This restriction will also apply to their children and spouses. The final bill is expected to include the appointment of a new special inspector general to oversee the disbursement of funds to companies and ensure they qualify, according to a congressional aide.
The legislation would also create a five-person oversight panel, chosen by congressional leaders, that would monitor whether companies that received bailout money were living up to the obligations detailed in the bill to retain workers and limit executive pay.The legislation would also create a five-person oversight panel, chosen by congressional leaders, that would monitor whether companies that received bailout money were living up to the obligations detailed in the bill to retain workers and limit executive pay.
And, Treasury Secretary Steven Mnuchin would be required to make regular appearances before Congress to discuss the bailout package and how it was being carried out.And, Treasury Secretary Steven Mnuchin would be required to make regular appearances before Congress to discuss the bailout package and how it was being carried out.
Those guardrails are similar to what lawmakers put in place for the Troubled Asset Relief Program, the $700 billion bank bailout that Congress passed during the 2008 financial crisis. That bill created a special inspector general for the Troubled Asset Relief Program, or TARP, as well as a congressional oversight panel that was led by Elizabeth Warren, now a Democratic senator from Massachusetts. Those guardrails are similar to what lawmakers put in place for the Troubled Asset Relief Program, the $700 billion bank bailout that Congress passed during the 2008 financial crisis.
Questions from President Trump about the sustainability of a shutdown of normal life to safeguard health raise an issue that economists have long grappled with: How can a society assess the trade-off between economic well-being and saving lives?Questions from President Trump about the sustainability of a shutdown of normal life to safeguard health raise an issue that economists have long grappled with: How can a society assess the trade-off between economic well-being and saving lives?
Government agencies calculate these trade-offs regularly. The Environmental Protection Agency has established a cost of about $9.5 million per life saved as a benchmark for determining whether to clean up a toxic-waste site.Government agencies calculate these trade-offs regularly. The Environmental Protection Agency has established a cost of about $9.5 million per life saved as a benchmark for determining whether to clean up a toxic-waste site.
In a paper this week, three economists tried to figure the optimal way to slow the spread of the new coronavirus without economic costs that exceed the benefits.In a paper this week, three economists tried to figure the optimal way to slow the spread of the new coronavirus without economic costs that exceed the benefits.
In one set of assumptions — leaving it to individuals to decide whether to isolate themselves — the authors say that about 1.7 million people in the United States would die within a year and that consumer demand would decline by $800 billion in 2020, or about 5.5 percent.In one set of assumptions — leaving it to individuals to decide whether to isolate themselves — the authors say that about 1.7 million people in the United States would die within a year and that consumer demand would decline by $800 billion in 2020, or about 5.5 percent.
They say that under an alternative approach — involving tighter restrictions on movement and commerce — the decline in consumption in 2020 more than doubles, to $1.8 trillion, but deaths drop by half a million. The difference amounts to $2 million in lost economic activity per life saved.They say that under an alternative approach — involving tighter restrictions on movement and commerce — the decline in consumption in 2020 more than doubles, to $1.8 trillion, but deaths drop by half a million. The difference amounts to $2 million in lost economic activity per life saved.
In this instance, “you want to make the recession worse,” said one of the economists, Martin S. Eichenbaum of Northwestern University.
More than 1,200 health care workers have used a private online document to share their stories of fighting the coronavirus pandemic on the front lines.More than 1,200 health care workers have used a private online document to share their stories of fighting the coronavirus pandemic on the front lines.
In their accounts, they say the outbreak has turned American hospitals into “war zones.” They talk about being scared to go to work and anxious that they will become infected. They describe managers who seem to not care about their plight.In their accounts, they say the outbreak has turned American hospitals into “war zones.” They talk about being scared to go to work and anxious that they will become infected. They describe managers who seem to not care about their plight.
“But we show up and have to keep showing up,” one nurse wrote, “and we have to test ourselves.”“But we show up and have to keep showing up,” one nurse wrote, “and we have to test ourselves.”
The document was created on March 19 by Sonja Schwartzbach, a nurse in New Jersey who is studying as a doctoral student. She said she started compiling the accounts after she determined that hospital conditions were “far worse” than most people realized and that her fellow health care workers needed a place to share what they were seeing.The document was created on March 19 by Sonja Schwartzbach, a nurse in New Jersey who is studying as a doctoral student. She said she started compiling the accounts after she determined that hospital conditions were “far worse” than most people realized and that her fellow health care workers needed a place to share what they were seeing.
HUB FOR HELPHUB FOR HELP
Older Americans are at a high risk for serious illness from the coronavirus, and most who are over age 65 are covered by Medicare.Older Americans are at a high risk for serious illness from the coronavirus, and most who are over age 65 are covered by Medicare.
Medicare already covers its enrollees for much of what they might need if they contract the virus and become seriously ill — and it has expanded some services and loosened some rules in response to the crisis. Read more on how navigate Medicare right now.Medicare already covers its enrollees for much of what they might need if they contract the virus and become seriously ill — and it has expanded some services and loosened some rules in response to the crisis. Read more on how navigate Medicare right now.
Ask us your money questions at this difficult time. If you have questions or ideas, write to hubforhelp@nytimes.com and Ron Lieber, Tara Siegel Bernard and our personal finance team will read every message.Ask us your money questions at this difficult time. If you have questions or ideas, write to hubforhelp@nytimes.com and Ron Lieber, Tara Siegel Bernard and our personal finance team will read every message.
Occidental Petroleum on Wednesday said it would slash capital spending and executive salaries and that it had reached a truce with the investor Carl C. Icahn who had been pushing the oil company to replace its board of directors. The oil company, which has seen its shares plummet after a badly-timed acquisition and the crash in oil prices, is cutting capital spending by nearly 50 percent, to around $2.8 billion.Occidental Petroleum on Wednesday said it would slash capital spending and executive salaries and that it had reached a truce with the investor Carl C. Icahn who had been pushing the oil company to replace its board of directors. The oil company, which has seen its shares plummet after a badly-timed acquisition and the crash in oil prices, is cutting capital spending by nearly 50 percent, to around $2.8 billion.
Major retailers announced efforts on Wednesday to help secure protective equipment for hospitals. Gap said it will help source masks and protective gowns from its vendors for California hospitals. Canada Goose said it will reopen two manufacturing facilities to produce scrubs and patient gowns for health care workers and patients in Canada.Major retailers announced efforts on Wednesday to help secure protective equipment for hospitals. Gap said it will help source masks and protective gowns from its vendors for California hospitals. Canada Goose said it will reopen two manufacturing facilities to produce scrubs and patient gowns for health care workers and patients in Canada.
Target said that its month-to-date comparable sales soared by 20 percent compared to last year. The demand came from obvious places: comparable sales of essentials and food and beverages were up by at least 50 percent, while apparel and accessories were down more than 20 percent from last year. But the chain pulled its forecast for the first quarter and the year.Target said that its month-to-date comparable sales soared by 20 percent compared to last year. The demand came from obvious places: comparable sales of essentials and food and beverages were up by at least 50 percent, while apparel and accessories were down more than 20 percent from last year. But the chain pulled its forecast for the first quarter and the year.
Reporting was contributed by Jim Tankersley, Alan Rappeport, Alexandra Stevenson, David Gelles, Eduardo Porter, Clifford Krauss, Edmund Lee, Sapna Maheshwari, Brian X. Chen, Elaine Yu, Daniel Victor, Jason Karaian, Kevin Granville and Carlos Tejada. Reporting was contributed by Jim Tankersley, Alan Rappeport, Alexandra Stevenson, David Gelles, Eduardo Porter, Clifford Krauss, Michael M. Grynbaum, Edmund Lee, Sapna Maheshwari, Brian X. Chen, Elaine Yu, Daniel Victor, Jason Karaian, Kevin Granville and Carlos Tejada.