March 16

3/16 – Weeks of confusion and debate about COVID-19 finally gave way to reality over the past week, with a tidal wave of event, school and business closures. On Saturday, the House of Representatives passed legislation that would make virus testing free and provide paid sick leave to certain workers affected by the outbreak. On Sunday, the Federal Reserve fired its last bullet, slashing the federal funds rate effectively to zero. Additionally, the Fed committed to buying $500B in Treasury securities and $200B in mortgage-backed securities over the next few months. But the key issue is that the U.S. economy relies on consumer spending - on things more than just food and toilet paper – and that Americans are hunkering down. The potential for months of depressed spending could lead to the collapse of many companies, rising unemployment and a spiral downward into recession.