COVID-19 Fiscal Stimulus Special Report
Unprecedented CARES Act Provides Backstop for Workers and Businesses; Investors Navigate New Temporary Reality
CARES Act injects trillions into the economy. The largest stimulus package in U.S. history, the Coronavirus Aid, Relief, and Economic Security Act aims at providing financial security to individuals as well as small and large businesses, while also supporting the government response to the pandemic. Funds will be distributed to taxpayers, corporations, small businesses, and several additional organizations over the next few weeks while federally backed loans are eligible for forbearance. Coupled with action by the Federal Reserve and U.S. Treasury Department, approximately $6 trillion in government aid could be injected into the economy in the second quarter while fading in the second half of the year. The Federal Reserve and government have moved much more quickly to shore up the market relative to the Great Recession in the hopes of avoiding a deep economic downturn that persists for several quarters. Additional rounds of stimulus to enhance individual programs are now in discussion on Capitol Hill in case they are needed.