Put the Fed in Charge of the Coronavirus Bailout
Congressional Republicans and Democrats can’t agree, so they should let Jerome Powell decide.
The man in charge?
Photographer: Mark Makela/Getty Images North AmericaIn a battle reminiscent of the initially unsuccessful efforts to pass legislation to address the Great Recession in 2008, Republicans and Democrats have thus far failed to advance a $2 trillion relief bill for the coronavirus recession. The only way forward may be to let the Federal Reserve resolve this dispute.
The sticking point in negotiations is a provision giving the Treasury Department nearly $500 billion to make loans to troubled corporations. Democrats argue that it amounts to a “slush fund” for the president’s friends and allies. Republicans counter that the White House needs flexibility to address a national emergency. Whether the bill will include an “accountability panel” remains to be seen.