Yale School of Management

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Congress Passes the $1.9 Trillion American Rescue Plan Act

March 12, 2021
On Thursday, President Biden signed the nearly $1.9 trillion American Rescue Plan (ARP) Act into law. The relief package contains additional direct payments to households, enhanced unemployment insurance benefits, tax relief for households, $350 billion in state and local government aid, and $170 billion to schools and universities. Continue reading “Congress Passes the $1.9 Trillion American Rescue Plan Act ”

Largest Banks' Capital Set to Moderate, Payouts to Triple

January 26, 2021
After the Federal Reserve released the results in December of its first mid-cycle stress test, designed to test large banks’ resilience against downside pandemic scenarios, it allowed large banks to resume share buybacks starting in the first quarter of 2021, subject to limits. Fed Governor Lael Brainard cast the lone dissenting vote, noting the risks to bank capitalization and lending of raising payout limits to a level that “nearly doubles the amount of capital permitted to be paid out relative to last quarter.” In the case of the six largest banks on the heels of strong trading and investment banking revenues, however, aggregate payouts are set to triple. Continue reading “Largest Banks' Capital Set to Moderate, Payouts to Triple”

President-Elect Joe Biden Releases $1.9 Trillion American Rescue Plan

January 19, 2021
On January 14, President-elect Joseph Biden released a $1.9 trillion rescue plan that would provide significant assistance to individuals and families, states and localities, schools and universities, and small businesses. The proposal specifically calls for additional direct payments to households, a permanent increase of the federal minimum wage to $15 an hour, extended unemployment insurance benefits, tax relief for households, $350 billion in state and local government aid, $170 billion to schools and universities, $70 billion for COVID testing and vaccine program, and $50 billion for small businesses.  Continue reading “President-Elect Joe Biden Releases $1.9 Trillion American Rescue Plan”

Non-primary Home Buyers, Shadow Banking, and the U.S. Housing Market

January 11, 2021
This guest blog post was drafted by from Adrian Alter, an economist at the International Monetary Fund, in the Monetary and Capital Markets Department, and Zaki Dernaoui, a PhD candidate at MIT Sloan, in the Finance Group. The views expressed in this blog are those of the authors and do not necessarily represent the views of the IMF, its Executive Board, or IMF management. Continue reading “Non-primary Home Buyers, Shadow Banking, and the U.S. Housing Market”

Use of Federal Reserve Programs – 01/06/2021

January 11, 2021
Below we report on operational Fed programs, based on the Fed’s weekly H.4.1 release. Since our last report, the use of lending facilities has increased to $94.8 billion. The use of the Main Street Lending Facility (MSF) surged before it, along with the other CARES ACT facilities, ceased new lending at the end of the year. The outstanding amount of the Fed’s U.S. dollar swap lines expanded to the end of the year, then dropped.  Continue reading “Use of Federal Reserve Programs – 01/06/2021”

Congress Passes Additional $908 Billion Stimulus Bill

December 22, 2020
Both houses of Congress quickly passed a new coronavirus-related economic relief package with widespread bipartisan support in the late hours of December 21. The new stimulus legislation, estimated at $908 billion, includes further funds for the Paycheck Protection Program and other small business relief, another round of direct payments to households, extended unemployment benefits, and further support for airlines.  Continue reading “Congress Passes Additional $908 Billion Stimulus Bill”

Congressional Oversight Commission Scrutinizes National Security Loans

December 16, 2020
In the Congressional Oversight Commission (“COC”) November Report, the members of the Commission focused on questions surrounding the U.S. Treasury Department’s (“Treasury”) $700 million loan to YRC Worldwide, under the auspices of the Coronavirus Aid, Relief, and Economic Security (CARES) Act provision for loans to businesses critical to national security. Treasury Secretary Steven Mnuchin appeared before the commission at a public hearing on December 10 to discuss the national security loan program. Additionally, the report provided an update on the various CARES Act lending facilities. Continue reading “Congressional Oversight Commission Scrutinizes National Security Loans”