Economics

Good Budget News on U.S. Relief Package May Be Bad News for Economy

CBO says Fed programs in the CARES Act won’t boost deficit
Critics say Fed should err on side of losing cash in crisis

Pelosi Says Relief Package to Pass House in Strong, Bipartisan Way

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By Rich Miller

April 22, 2020 at 9:00 AM UTC

This article is for subscribers only.

At first glance, it was good news. The Congressional Budget Office said last week that the mammoth economic relief package passed in March would cost the government $1.8 trillion, not the $2.2 trillion initially thought.

But look beneath the surface, some economists say, and the CBO’s calculations are not that comforting. Why? Because they suggest the government may not be providing the economy with all the support it might need to survive the coronavirus shock relatively intact.