Politics
Fed to buy unlimited government debt and lend to businesses
Published
6 years agoon
WASHINGTON (AP) — In its boldest effort to protect the U.S. economy from the coronavirus, the Federal Reserve says it will buy as much government debt as it deems necessary and will also begin lending to small and large businesses and local governments to help them weather the crisis.
The Fed’s announcement Monday removes any dollar limits from its plans to support the flow of credit through an economy that has been ravaged by the viral outbreak. The central bank’s all-out effort has now gone beyond even the extraordinary drive it made to rescue the economy from the 2008 financial crisis.
“The coronavirus pandemic is causing tremendous hardship across the United States and around the world,” the Fed said in a statement. “While great uncertainty remains, it has become clear that our economy will face severe disruptions. Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.”
Financial markets sharply reversed themselves after the announcement but then fell back again after the market opened. By mid-day, the Dow Jones Industrial Average was down about 4%. The yield on the 10-year Treasury bond fell, a sign that more investors are willing to purchase the securities.
In unleashing its aggressive new efforts, the Fed, led by Chair Jerome Powell, is trying both to stabilize the economy and allay panic in financial markets. Many corporations and city and state governments are in desperate need of loans to pay bills and maintain operations as their revenue from customers or taxpayers collapses. That need has escalated demand for cash. In the meantime, large businesses have been drawing, as much as they can, on their existing borrowing relationships with banks.
The intensifying needs for cash means that banks and other investors are seeking to rapidly unload Treasuries, short-term corporate debt, municipal bonds and other securities. The Fed’s move to step in and act as a buyer of last resort is intended to provide that needed cash.
The central bank’s actions increase pressure on Congress to approve a nearly $2 trillion stimulus package that stalled late Sunday. The bill includes funds that would help backstop the Fed’s lending. Many economists say that whatever financial support Congress eventually provides will likely be even more important than the Fed’s intervention. And they warn that such fiscal help needs to come soon.
The Fed’s intervention is not a substitute for fiscal stimulus,” said Joseph Gagnon, a former Fed economist who is now senior fellow at the Peterson Institute for International Economics. “Let’s hope Congress passes something quickly.”
Joe Brusuelas, chief economist at RSM, a tax and advisory firm, said that if Congress can pass the legislation and have it signed into law by Tuesday, banks could start making loans to small and medium-sized businesses, with the Fed’s support, by Friday.
In its announcement Monday, the Fed said it will establish three new lending facilities that will provide up to $300 billion by purchasing corporate bonds, a wider range of municipal bonds and securities tied to such debt as auto and real estate loans. It will also buy an unlimited amount of Treasury bonds and mortgage-backed securities to try to hold down borrowing rates and ensure those markets function smoothly.
The central bank’s new go-for-broke approach is an acknowledgment that its previous plans to keep credit flowing smoothly, which included dollar limits, wouldn’t be enough in the face of the viral outbreak, which has brought the U.S. economy to a near-standstill as workers and consumers stay home. Last week, it said it would buy $500 billion of Treasuries and $200 billion of mortgage-backed securities, then quickly ran through roughly half those amounts by week’s end.
And on Monday, the New York Federal Reserve said it would buy $75 billion of Treasuries and $50 billion of mortgage-backed securities each day this week.
“They’re really setting the economy up” to start functioning again when the health crisis subsides, said Donald Kohn, a former Fed vice chair who is a senior fellow at the Brookings Institution. “Part of this is about the other side of the valley: Make sure the credit is there.’’
Still, Kohn noted, “These things will take some time to set up. These are complicated” programs.
Just knowing that the Fed is on the case should reassure businesses as the programs ramp up, Kohn said.
“The fact that this is coming: People will know it,” Kohn said. “They know the Fed is on the job. If there are issues that come up, what you’re seeing from this Federal Reserve is: ‘We will deal with it.’ ’’
The Fed mostly creates the money it will use to buy bonds and lend to large and small businesses. But it seeks to avoid credit losses. It has been using money from a Treasury fund to offset any losses on its loans. That fund, the Exchange Stabilization Fund, has already committed most of that money to the Fed’s existing facilities. The congressional legislation could boost that amount by $500 billion.
“The steps announced today, combined with the previous ones … should substantially improve market functioning and should provide some important support for the economy,” said Roberto Perli, a former Fed economist who is now head of global policy research at Cornerstone Macro.
But Perli cautioned that the benefits won’t be felt immediately.
“The next couple of quarters will still be probably bad,” he said.
The new programs announced Monday by the Fed include two that will buy corporate debt issued by large companies. The Fed legally can’t lend directly to companies. But it can lend to separate entities, which can then make those purchases.
One program will buy newly issued corporate debt. This is an effort to revive that market, which has effectively come to a standstill. The second will buy previously issued corporate debt. Both programs will include $10 billion provided by the Treasury to offset any losses.
A third new lending program will buy securities backed by packages of auto loans, credit card loans and some small business loans. Lending in those areas hinges on the ability of banks to package those loans into securities and sell them. So the Fed’s move is critical to the ability of banks to continue to provide these loans as the economy falters.
The Treasury will also provide $10 billion to that program to offset any losses. All told, those three programs can lend up to $300 billion.
The Fed said that companies “that are expected to receive direct financial assistance under pending federal legislation” are not eligible to participate in the corporate lending programs — a reference to the airline industry and perhaps others under consideration.
Companies will have to be rated at investment grade, or above junk level, to be eligible for lending. The companies can defer payments for up to six months, the Fed said. If they do suspend payment, they are not allowed to buy back their shares or pay dividends, it said.
The Fed also said it will soon establish a “Main Street Business Lending Program” to support lending to small and medium-sized businesses. But it provided few details and didn’t say when that program would begin.
That program will likely be funded by and is intended to complement the congressional stimulus legislation, which also includes a provision to provide financing to very small companies. The Fed’s Main Street program will target medium-sized businesses, officials said.
Brusuelas noted that by announcing the Main Street lending program, the Fed had committed to something before a congressional backstop was in place, a virtually unheard-of step.
“You’re never going to see that again, hopefully,” he said.
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Florida
[COURTS & LAW] Paula Stark Court Record Could Impact Daisy Morales, James Bush III Defamation Lawsuits Against FHDCC
Published
6 hours agoon
August 28, 2026Stark’s Leon County Election Fight, Bush’s $1 Million Default Battle in Miami-Dade and Morales’ Orange County Defamation Lawsuit Could Put FHDCC’s Legal Status Under Scrutiny in Three Florida Courts
ORLANDO, Fla. (FNN) — Three Florida court cases. Three counties. One political committee — and an unresolved legal question that could affect two pending defamation lawsuits.
Court records obtained and reviewed by Florida National News show the Florida House Democratic Campaign Committee (FHDCC) sought permission to become a Party Defendant in Republican state Rep. Paula Stark’s Leon County election lawsuit in June 2026.
Less than a month later, FHDCC took a different procedural position in former Democratic state Rep. James Bush III’s Miami-Dade defamation lawsuit, arguing that it is an unincorporated political organization that lacks the capacity to be sued in its own name.
That position is supported by a sworn affidavit submitted by State Rep. Christine Hunschofsky, chair of FHDCC, describing her authority over committee funds and legal matters and stating the committee’s position that it cannot be sued as a political committee.
Now, former Democratic state Rep. Daisy Morales has named FHDCC as a defendant in a separate defamation lawsuit in Orange County.
The cases involve different parties, claims and legal issues. FHDCC’s attempt to intervene in Stark’s case does not establish that the committee has capacity to be sued in Bush or Morales.
But the developing record presents a significant question: FHDCC affirmatively asked one Florida circuit court to allow it to become a Party Defendant, then later argued in another that its organizational structure prevents it from being sued in its own name.
FHDCC Asked to Become a Party Defendant in Stark Case
Stark, a Republican state representative from St. Cloud, sued after election officials determined she failed to qualify for reelection to House District 47.
Her case, Paula Stark v. Cord Byrd, et al., Case No. 2026-CA-1311, was filed in the Second Judicial Circuit in Leon County before Circuit Judge Joshua M. Hawkes.
On June 25, 2026, attorney Mark Herron filed a motion on behalf of FHDCC and Democratic House District 47 candidates Jorge Figueroa and Anthony Nieves.
The filing was expressly titled “Motion to Intervene as a Party Defendants in Pending Election Case” and asked Hawkes to permit FHDCC, Figueroa and Nieves to intervene as Party Defendants under Florida Rule of Civil Procedure 1.230.
FHDCC also described itself in the motion as an affiliated party committee established under Section 103.092, Florida Statutes, to support Democratic candidates for the Florida House.
The committee asserted that the outcome of Stark’s lawsuit would affect the resources FHDCC would expend in the House District 47 election.
Herron signed the filing as “Attorney for the Florida House Democratic Campaign Committee.”
Herron also serves as FHDCC treasurer. His dual role could become relevant if the Bush or Morales defamation lawsuits reach discovery concerning the committee’s organization, finances or decision-making. Any potential testimony would depend on Herron’s firsthand knowledge and applicable attorney-client and other legal protections.
Hawkes Denied FHDCC Intervention
FHDCC did not succeed in becoming a party to Stark’s case.
In his July 8 Order on Petition for Mandamus, Hawkes explained that he denied FHDCC intervention because the committee’s asserted interest amounted to “just a financial stake.”
Hawkes instead allowed Figueroa and Nieves to intervene because their candidacies and political positions were directly affected by whether the primary would remain closed. The written order consequently identifies Figueroa and Nieves — not FHDCC — as intervenors.
That distinction is critical.
The Stark record establishes that FHDCC asked to become a Party Defendant. It does not establish that the court accepted FHDCC in that capacity. Hawkes expressly denied the committee’s request.
Hawkes ultimately denied Stark’s request for ballot relief. In his analysis, he also referenced an argument advanced by “counsel for Intervenors.”
The Stark litigation was subsequently closed.
Why Stark Matters
Hawkes did not decide whether FHDCC has legal capacity to sue or be sued.
He rejected FHDCC’s intervention because its asserted interest in the election dispute was insufficient.
But the underlying motion remains significant because it establishes that FHDCC, through counsel, affirmatively invoked a Florida court’s jurisdiction and asked to participate as a Party Defendant.
That record could become relevant if FHDCC maintains in other courts that its organizational structure prevents it from being sued in its own name.
Bush’s $1 Million Default Battle in Miami-Dade
While Stark’s election litigation was unfolding in Leon County, FHDCC was facing a different legal battle in Miami-Dade.
Former Democratic state Rep. James Bush III filed a defamation lawsuit in August 2025 against Edge Communications, LLC, Strong Community, FHDCC and state Rep. Ashley Gantt.
The case, James Bush III v. Edge Communications, LLC, et al., Case No. 2025-015569-CA-01, was assigned to Section CA31 of the Eleventh Judicial Circuit and Circuit Judge Migna Sanchez-Llorens, according to the court’s Case Management Order.
The order, signed Oct. 11, 2025, established July 8, 2026, as the deadline for summary judgment and dispositive motions, resolution of certain pretrial matters and mediation. It projected an Oct. 6, 2026 trial date.
On July 8 — the same day Hawkes issued his Stark ruling in Leon County — clerk defaults were entered against FHDCC and other defendants in Bush’s lawsuit, according to filings previously reviewed by FNN.
FHDCC moved to set aside its default on July 15.
Bush then filed a Motion for Final Default Judgment on July 29 seeking $1 million, plus costs, against the defaulted defendants.
The distinction is important: Bush is seeking a $1 million final default judgment. The court has not entered a $1 million judgment based on the records reviewed for this report.
FHDCC Argues It Cannot Be Sued in Its Own Name
FHDCC’s response to the Miami-Dade default creates the central comparison with the Stark record.
In its Motion to Set Aside Default, FHDCC argued that it is a 527 political unincorporated organization that lacks capacity to be sued in its own name.
The committee cited Larkin v. Buranosky, a 2008 Florida appellate decision involving unincorporated political organizations.
That remains FHDCC’s legal position, not a determination by the Miami-Dade court.
But the timing creates a significant comparison:
June 25 — Leon County: FHDCC asks to enter litigation as a Party Defendant.
July 8 — Leon County: Hawkes denies FHDCC intervention.
July 15 — Miami-Dade County: FHDCC argues that its organizational status prevents it from being sued in its own name.
Those positions are not automatically contradictory. Intervention and capacity to be sued are distinct legal questions, and Hawkes did not decide whether FHDCC possessed capacity to sue or be sued.
But the records could invite scrutiny of how FHDCC characterizes its legal identity and litigation authority in different proceedings.
FHDCC Chair Hunschofsky Submits Sworn Affidavit
The Miami-Dade dispute took on added significance when State Rep. Christine Hunschofsky, chair of the Florida House Democratic Campaign Committee, submitted a sworn affidavit supporting FHDCC’s effort to set aside the default.
Hunschofsky described FHDCC as a Florida registered political committee affiliated with the Florida Democratic Party but not controlled by it.
She also described her authority within the organization, stating that she is responsible for the allocation of FHDCC funds and for legal actions against the committee and its defense.
Hunschofsky further stated that FHDCC is an unincorporated entity and that the committee understands it “cannot be sued as a political committee.”
She said that after learning Bush had obtained a default, she immediately instructed attorney Juan-Carlos Planas to seek to set aside the default and have the case dismissed based on FHDCC’s position that it cannot be sued under Florida law.
The affidavit represents sworn statements by FHDCC’s chair concerning the committee’s structure and her responsibilities. Her assertion concerning whether FHDCC can be sued is the committee’s legal position; it does not establish that Sanchez-Llorens has accepted that interpretation.
Morales Defamation Lawsuit Brings Question to Orange County
The third case brings the issue to Orange County.
On Aug. 14, former Democratic state Rep. Daisy Morales filed a defamation lawsuit against FHDCC and Democratic House District 43 nominee Samuel Vilchez Santiago.
The case, Daisy Morales v. Samuel Vilchez Santiago and Florida House Democratic Campaign Committee, Case No. 482026CA008697A001OX, is pending in the Ninth Judicial Circuit before Circuit Judge Michael Deen.
Morales asserts claims for defamation/libel and defamation by implication arising from political mailers distributed during the Democratic primary campaign.
Among the disputed statements was a representation that Morales endorsed Republican candidates and was expelled from the Orange County Democratic Party.
Morales alleges the statements were false and defamatory.
Those allegations remain pending. Neither Vilchez Santiago nor FHDCC has been found liable for defamation.
Vilchez Santiago defeated Morales in the Aug. 18 Democratic primary, but the election result does not resolve the civil lawsuit.
Could Stark and Bush Affect Morales?
The Stark intervention record makes the potential Orange County issue clearer.
If FHDCC raises the same capacity defense against Morales that it raised against Bush, the Orange County court could be asked to consider a broader record concerning the committee’s legal identity and structure.
That record could include FHDCC’s request to become a Party Defendant in Stark; Herron’s representation of the committee; Hawkes’ denial of FHDCC intervention; FHDCC’s Miami-Dade capacity argument; Hunschofsky’s sworn affidavit; and state records governing the committee’s organization and operations.
None of that evidence establishes the merits of Morales’ defamation claims.
But it could become relevant to a threshold question:
Is FHDCC itself a proper defendant?
And if Florida law ultimately says it is not, another question follows:
Who is the proper party for allegedly actionable conduct undertaken through the committee?
Three Courts, Different Consequences
The issue carries different consequences in each court.
Leon County: FHDCC affirmatively sought Party Defendant status, but Hawkes denied its intervention. Stark’s case is closed, and nothing in the Bush or Morales litigation currently changes that outcome.
Miami-Dade County: The consequences are immediate. Bush is seeking a $1 million final default judgment while FHDCC is attempting to set aside its default and arguing that it cannot be sued in its own name.
Orange County: The issue is prospective. If FHDCC raises the same capacity defense against Morales, Deen could be asked to examine the developing Stark and Bush records in determining whether FHDCC is a proper defendant.
One Political Committee, Three Florida Courts
The court records do not establish wrongdoing by FHDCC, Herron, Hunschofsky or their attorneys. Nor do they establish the merits of the Bush or Morales defamation claims.
What they do establish is an unusual litigation record involving the same political committee across three Florida circuit courts.
In Leon County, FHDCC asked to become a Party Defendant — and Hawkes denied the request.
In Miami-Dade County, FHDCC is fighting a clerk’s default and Bush’s request for a $1 million final default judgment while arguing that it cannot be sued in its own name.
In Orange County, FHDCC is now a named defendant in Morales’ defamation lawsuit.
The cases could ultimately put a fundamental question under scrutiny:
What is the Florida House Democratic Campaign Committee’s legal status — and if FHDCC cannot be sued in its own name, who may be held legally accountable for actionable conduct undertaken through the committee if that conduct is ultimately proven?
Florida
FIU Becomes First Florida University to Launch CORE Emergency Management Partnership
Published
3 days agoon
August 26, 2026MIAMI, Fla. (FNN) — Florida officials announced the launch of the Coalition for Operational Readiness in Education, or CORE, Program at Florida International University, beginning an initiative designed to strengthen the state’s emergency management workforce through partnerships with colleges, universities and technical and trade schools.
The program will connect higher education institutions with the Florida Division of Emergency Management and other state agencies to provide students with specialized education and training in emergency management.
CORE is also expected to provide opportunities for students to earn industry-recognized certificates and establish pathways to jobs with emergency management offices and private-sector industry partners across Florida.
FIU First to Launch CORE
Florida International University in Miami is the first institution where CORE is being rolled out.
State officials said 11 institutions have committed to participating, with the long-term goal of expanding the initiative to every college, university, technical school and trade school in Florida.
The statewide expansion would create a pipeline of students trained for careers involving disaster preparedness, emergency response and recovery.
Building Florida’s Emergency Management Workforce
Florida’s exposure to hurricanes and other natural disasters has made emergency preparedness and response a major state priority.
Officials said maintaining Florida’s emergency management capabilities requires developing the next generation of professionals who will work before, during and after disasters and other emergencies.
The CORE partnerships are designed to connect classroom education with professional training, certifications and employment opportunities.
Education-to-Employment Pipeline
The program is intended to create a more direct pathway from education to careers in emergency management.
Through partnerships involving state agencies, educational institutions and industry organizations, students could gain specialized training while developing credentials recognized by employers.
The initiative could also help state and local emergency management agencies develop a larger pool of trained candidates as Florida’s population and emergency-response needs continue to grow.
Statewide Expansion Planned
While the program begins at FIU, officials said the broader objective is statewide.
The goal is to eventually establish CORE partnerships throughout Florida’s higher education and workforce-training system, including universities, colleges, technical schools and trade schools.
Florida officials also envision CORE becoming a workforce-development model that other states could replicate.
Key Takeaways
- Program: Coalition for Operational Readiness in Education (CORE)
- Initial launch: Florida International University in Miami
- State partner: Florida Division of Emergency Management and other state agencies
- Participating institutions: 11 institutions have committed so far
- Training: Specialized emergency management education and workforce preparation
- Credentials: Industry-recognized certificates
- Career component: Pathways to emergency management agencies and industry employers
- Long-term goal: Expand CORE to colleges, universities, technical schools and trade schools throughout Florida
- National objective: Develop a Florida workforce model that could be replicated in other states
Florida
Byron Donalds Selects Miami-Dade Sen. Bryan Avila as Running Mate in Florida Governor’s Race
Published
4 days agoon
August 25, 2026MIAMI, Fla. (FNN) — Republican gubernatorial nominee Byron Donalds selected Florida state Sen. Bryan Avila of Miami-Dade County as his running mate for lieutenant governor, adding a South Florida lawmaker to the GOP ticket for the 2026 general election.
Donalds announced Avila as his choice Tuesday, Aug. 25, at Miami’s historic Freedom Tower, a location closely associated with South Florida’s Cuban exile community.
The selection puts Avila alongside Donalds as Republicans turn their attention to the general election and the race to succeed Gov. Ron DeSantis.
Who Is Bryan Avila?
Avila is a Republican state senator from Miami-Dade County and previously served in the Florida House of Representatives.
His selection gives the Donalds ticket a prominent South Florida presence and adds a lawmaker with experience in both chambers of the Florida Legislature.
The Miami announcement also places immigration, communism, economic opportunity and Florida’s relationship with Latin American communities near the center of the Republican ticket’s general-election messaging.
Road to the General Election
With Avila joining the ticket, Donalds now moves toward the November general election with the Republican nominees for governor and lieutenant governor in place.
The lieutenant governor selection is one of Donalds’ most consequential decisions since securing the Republican nomination, helping define the geographic, political and demographic strategy of his statewide campaign.
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