A member of the Congress of the Supervisory Board, said up to now, the Federal Reserve system and the and the and the Treasury Department have supported the stock market, but have failed to protect workers ‘ jobs in the middle of the corona virus of the pandemic.
Bharat Ramamurti was the first member appointed to the commission, a group created in the CARES Act to oversee the $ 500 billion Congress is a gift from the Federal reserve and Treasury to stabilize the U. s. economy.
The Federal Reserve has opened the world series of poker circuit facilities as a safety net to the various financial markets, most with the help of the U. s. treasury. But the Fed has still not resist a taxpayer-supported facility that it would be offering cheap loans for medium-sized and large businesses, and to throw a bridge across the corona virus of the crisis. The Fed Chairman Jerome Powell, said last week that its Main Street is a Commercial Program, which will be open to businesses with less than 15, 000 employees or less than $ 5 billion in annual revenue, would be at home in a few days.”
“The mere announcement of their program and how they plan to use the money that has provided real assurance to the corporate bond markets and investors,” said Ramamurti, in an interview with Yahoo Finance. “The Fed and Treasury programs have so far been very successful, if the goal of the program is to support the stock market and the corporate bond market. If the goal of the program is to protect jobs and aid the state and local governments and mid-size companies too — because I think that it is a failure.”
Ramamurti was the general manager of the Company’s Feeding program at the Roosevelt Institute and a former economic adviser to the Fund. Elizabeth Warren (D-MA). He argues there should be additional terms and conditions guaranteed by the taxpayers, the support of large companies to ensure that companies give priority to the health of workers.
“At the present time, there are no strings attached to hundreds, even billions of dollars of support from the Fed and the Treasury are ticketing for large companies — including, for example, through the purchase of new corporate bonds,” said Ramamurti.
Small businesses looking for loans through the paycheck Protection Program is have to spend more money on the wage bill, while the Main Street is a Commercial Program imposes restrictions on share repurchases and executive compensation and dividends. The businesses will also have to make efforts to retain employees.
“None of these limitations apply to the large companies, and I think it is relative because we have seen in the past, the really big American companies, often, their first priority is to take care of shareholders and managers, and their last priority is to take care of the workers, and what we need to see now, it is the opposite,” said Ramamurti.
the first report last month: and the support of the Fed and Treasury about the absence of limits.” “data-reactid=”35″> – The commission has published its the first report last month: and the support of the Fed and Treasury about the absence of limits.
On the ease that the purchases of new bond issues by large firms, with few limits on how companies spend money, we need to ask: does the Treasury and the Fed, believe that the money will help stabilize the economy regardless of how businesses use it? 8/ pic.twitter.com/X8mivhLd3F
— Bharat Ramamurti (@BharatRamamurti) May 18, 2020
Ramamurti told Yahoo Finance, ” the commission has not yet received a response, but he hoped to have an answer fairly quickly.”
“If it was an emergency, why is it taking so long to get this money instead? Why is it that, today, not a single dollar has been used to support small and medium-sized enterprises through loans? Why is it that, today, not a single dollar is spent in loans to the state and local governments, who already suffer through tremendous budget crunches, and that are already laying workers off,” said Ramamurti.
The Congress Oversight Committee is currently composed of two Republican and two Democratic members, all appointed by the leaders of the Congress. Speaker Nancy Pelosi and Majority Leader Mitch McConnell have not yet agreed on a person to the presidency of the commission.
Each member of the commission, and so far, it is working together and working hard to do what we can with the resources we have. I do not think that we do not make excuses, but I would like to see a chair and I would like to see the commission is fully staffed, so that we can continue to dig into the details of this program,” said Ramamurti.
The commission is about to release its second report in mid-June.
@JessicaASmith8.“data-reactid=”48″>Jessica Smith is a writer for Yahoo Finance, based in Washington, D. C. Follow us on Twitter at @JessicaASmith8.