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At a two hour hearing with Fed Chairman Jay Powell, no lawmakers asked questions about the central bank's purchases of corporate debt wsj.com/articles/fed-c…
The Fed pays attention to what Congress says or does (or doesn't say or do).

Here's Bernanke in 2009, pushing back against colleagues who were worried that the expansion of crisis programs (in this case, the TALF)
Bernanke: "I think the political risk is overstated.... I just don’t feel the pressure. I think the pressure would come if the Fed stood by and let the economy fall into the abyss, which is a very real possibility."
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Nick Timiraos
@NickTimiraos
In his interview with 60 Minutes, Fed Chairman Jay Powell pushes back on the idea that there’s a trade off between economic growth and public health safety.

“When the public is confident that it's safe to go out, they'll go out.” wsj.com/articles/feds-…
Scott Pelley asks Powell what he’d like to see for the economy on the back end of this crisis?

Powell: “We do need to be mindful of finding a way to a more inclusive prosperity in this country.”
Pelley: Is the Fed out of ammunition?

Powell: No way. On monetary policy, he says, “There are a number of dimensions where we can move to make policy even more accommodative.”
Read 7 tweets
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Nick Timiraos
@NickTimiraos
NEW: Major expansion of Fed lending facilities
$500 billion for municipal credit
TALF expanded to include AAA CMBS and AAA CLOs
Corporate credit extended to include fallen angels
$600 billion for loans to midsize businesses
wsj.com/articles/fed-a…
The Fed says these programs will provide $2.3 trillion in lending, and they are supported by $185 billion in new Treasury support
Muni facility will purchase up to $500 billion of short term notes directly from U.S. states, District of Columbia, U.S. counties with a population of at least two million residents, and U.S. cities with a population of at least one million residents.
Read 6 tweets
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Nick Timiraos
@NickTimiraos
Countercyclical fiscal policy in the U.S. is relatively rare. The one example of it from recent downturns—Jan 2008—illustrates how a lot of different policy makers were engaged relatively quickly

A quick rundown since this history is buried under the ensuing financial crisis
The BLS reports on Jan. 4 that the unemployment rate rose in December to 5% from 4.7%. Meantime, stocks begin to fall (around 12% through the month vs late December) as banks like Morgan Stanley announce Q4 writedowns forthcoming on mortgage-related investments.
Economists begin calling for fiscal stimulus (Example: blogs.wsj.com/economics/2008…) Bernanke does, too, in testimony before the budget committee on Thursday, Jan. 17
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