Waters Statement on Federal Reserve Response to Coronavirus

“The global spread of the novel coronavirus has adversely impacted the lives of millions of Americans, the economy and the financial system. This is in many ways an unprecedented crisis which calls for extraordinary federal response. Unfortunately, the Fed appears to be using its old playbook in trying to calm funding markets by flooding them with liquidity. During this time of economic turbulence, it is critical that the Fed go beyond these steps and provide much-needed support to those who are on the front lines of this pandemic. For example, state and local governments may soon face funding pressures and need assistance as they address this public health emergency. In addition, while many will benefit from the expanded paid leave and unemployment insurance that the House passed and the Senate is considering, some workers will still suffer as their hours are cut, jobs are lost, and their income is reduced. This will lead to late payments, defaults, and negative credit reporting. Some families may even face evictions or foreclosures. While Congress works on a bold, fiscal stimulus package to help these individuals, I call on the Fed to reevaluate its response and work creatively to address the needs of everyday Americans.”

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