FT News Briefing Wall Street awaits fiscal stimulus deal from Washington
Mar 24, 2020
The Federal Reserve is making waves with its plans to buy corporate and government debt. Meanwhile, Wall Street eagerly anticipates a fiscal stimulus deal. Columnist Rana Foroohar emphasizes that any bailout should prioritize individuals and small businesses first. The discussion reflects on past crises and the urgent need to balance support for corporations and everyday people.
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Market Reaction to Fed Intervention
- The Federal Reserve's intervention, including buying unlimited government bonds and corporate debt, aimed to stabilize markets.
- However, this action alone wasn't enough to reassure investors, who still awaited a fiscal stimulus package.
Stimulus Package Debate
- Republicans proposed a stimulus plan with aid for large industries and payouts to taxpayers.
- Democrats sought a plan less generous to big businesses, with limits on share buybacks and executive compensation.
Bailout Priorities
- Prioritize individuals and small businesses in bailout plans.
- Avoid repeating the mistakes of 2008 where corporations were bailed out with no strings attached, while individuals suffered.