Politics
Fed to buy unlimited government debt and lend to businesses
Published
7 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
Sam Garrison Proposes Florida House Committees on Technology, Public Integrity and Long-Term Policy
Published
59 minutes agoon
November 5, 2026The speaker-designate’s proposed structure would create a Policy & Strategy Committee, elevate technology oversight and reestablish a committee focused on ethics and public corruption.
TALLAHASSEE, Fla. (FNN) — Florida House Speaker-designate Sam Garrison outlined proposed changes to the chamber’s committee structure Thursday, calling for greater attention to long-term policy, artificial intelligence, cybersecurity and public integrity during the 2026-28 legislative term.
In a Nov. 5 memorandum to House members provided to Florida National News, Garrison said the proposal preserves most of the existing structure while making changes intended to improve coordination and examine the lasting consequences of legislative decisions.
“I am committed to making committee time meaningful,” Garrison wrote. “I want you to dig into ideas, hear from the public, and truly study your colleagues’ bills because behind every bill, every policy, and every budget item are people — our people.”
New Committee Would Examine Long-Term Policy and Costs
Garrison proposed creating a Policy & Strategy Committee to coordinate major initiatives involving multiple committees or state agencies.
The committee would draw on the expertise of subject-matter committees to examine how major reforms would operate and what they would cost. Its proposed jurisdiction includes long-range planning and fiscal stability, and it could consider legislation with a fiscal impact.
Garrison said the committee would provide a forum for considering challenges that extend beyond an individual legislative session or term.
“I want the House to consider where Florida needs to be in five or 10 or 20 years and what steps we should take now to get there,” he wrote.
Technology Oversight Would Become a Full Committee
The proposed Advanced Technology & Digital Security Committee would replace the previous term’s Information Technology Budget & Policy Subcommittee.
The full committee would focus on state technology governance and modernization, including agencies’ ability to implement legislation. Its responsibilities would also include:
- Artificial intelligence and emerging technologies.
- Cybersecurity and digital privacy.
- Data governance.
- Critical infrastructure security.
Garrison distinguished the committee’s policy and oversight responsibilities from spending decisions. The Appropriations Committee and its subcommittees would continue to consider technology funding.
“These issues affect both state government and the Floridians and businesses that rely on technology every day,” Garrison wrote.
He said the goal is to make informed technology decisions that prevent costly failures.
Public Integrity Committee Would Return
Garrison also proposed reestablishing the Public Integrity Committee, emphasizing ethics, integrity and investigations into public corruption.
The committee would consider related matters involving lobbying, financial disclosure and conflicts of interest.
“Floridians should be able to trust their government to act in the public interest,” Garrison wrote. “A dedicated committee will allow Members to examine the laws and standards that protect that trust.”
The Rules & Calendar Committee would retain responsibility for House rules, floor procedures and member conduct, according to the memorandum.
Most of the Existing Structure Would Remain
Garrison said most of the current committee structure would remain intact. Other changes would update committee names and bring related issues under shared jurisdictions.
The proposed adjustments are intended to help lawmakers examine connections among state policy, local decisions and their effects on residents.
The memorandum referred members to attached documents detailing the proposed structure and jurisdictions. It did not identify committee chairs or member assignments.
Public Input and Legislative Review Emphasized
Garrison urged members to use committee meetings to hear from the public, examine their colleagues’ proposals and consider the people affected by legislation and spending decisions.
“Our committee process should give you the opportunity to contribute and every proposal the careful consideration it deserves,” he wrote. “I look forward to working with you over the next two years.”
Florida
DeSantis’ Political Star Rises as Florida GOP Holds Statewide Offices Amid National Defeats
Published
3 hours agoon
November 5, 2026Republicans retain Florida’s statewide leadership despite Democratic gains in the Legislature, giving the outgoing governor a platform in the debate over the GOP’s future.
TALLAHASSEE, Fla. (FNN) — Gov. Ron DeSantis pointed to Florida’s Republican victories Wednesday as evidence that his governing approach helped withstand a national Democratic surge, highlighting the state as a remaining Republican stronghold after major defeats elsewhere.
Speaking a day after the election, DeSantis described the national Republican losses as approaching an “extinction-level event.” He contrasted those setbacks with Florida, where Republicans retained the governor’s office, all three Cabinet offices and the U.S. Senate seat on the ballot. abcnews.com
The results give DeSantis a platform to promote his record as Republicans assess their future. However, narrower statewide margins and Democratic legislative gains complicate any claim of an unqualified Republican mandate.
Florida Holds Statewide Republican Leadership
Republican Byron Donalds defeated Democrat David Jolly for governor, while U.S. Sen. Ashley Moody defeated Democratic challenger Angie Nixon. Republicans also won the races for attorney general, chief financial officer and agriculture commissioner.
The sweep left Florida Democrats without a statewide victory despite a more favorable national environment for their party. floridaphoenix.com
DeSantis, who was not on the ballot, argued that Florida Republicans benefited from the record established during his administration. His assessment places the state’s performance at the center of a broader question: What can Republicans learn from the places where they retained power?
DeSantis’ Political Star Gains Visibility
DeSantis’ remarks offered a defense of his governing approach as Republicans confronted the election’s consequences.
He credited Florida’s resilience to policy achievements and voter trust, while emphasizing that his immediate focus remained completing his term. wusf.org
Florida’s results strengthen his opportunity to participate in the national leadership debate. They do not, by themselves, establish that Republican voters have chosen him to lead the party or that he will launch another presidential campaign.
The distinction matters: Electoral success in Florida provides a political argument, while a national campaign would require support extending well beyond the state.
Texas Defeats Increase Florida’s Importance
DeSantis singled out Texas as a particularly consequential Republican setback. Once a dependable foundation of GOP strength, Texas delivered Democratic victories in the governor’s race, a U.S. Senate contest and other statewide offices.
He warned that those losses could weaken Republicans nationally for years. www.orlandoweekly.com
Against that backdrop, Florida’s Republican sweep gives its leaders greater prominence. The state’s emerging role as a Republican “Southern Star” is an interpretation of that contrast, rather than a designation DeSantis used.
For the outgoing governor, Florida offers evidence of political durability during a difficult election. For the national party, it offers a case to examine alongside the states where Republican support collapsed.
DeSantis Credits Amendment 3 With Turnout
DeSantis also credited voter-approved Amendment 3, the property tax measure, with attracting voters who subsequently supported Republican candidates.
He said implementation would require further legislative action and discussed protecting homeowners’ savings from being offset by other local charges. cbs12.com
His explanation remains an assessment of the election. Determining how much the amendment affected turnout and individual races would require additional analysis.
Democratic Legislative Gains Temper GOP Celebration
Florida’s statewide sweep did not prevent Republican losses elsewhere on the ballot.
Democrats gained seats in the Legislature and ended the Republican supermajority in the state House. Their leaders argued that the close statewide contests demonstrated Florida remained competitive and warranted greater national investment. floridaphoenix.com
Republicans therefore emerged with continued governing authority but less room for complacency. Retaining statewide offices and losing legislative ground are both part of the election’s outcome.
2018 Offers Democrats a Benchmark
Florida Democrats’ 2018 results provide a historical comparison between narrowly losing a statewide contest and winning governing authority.
Republican Ron DeSantis won the governor’s race with 4,076,186 votes, or 49.6%, while Democrat Andrew Gillum received 4,043,723 votes, or 49.2%. DeSantis prevailed by 32,463 votes, approximately 0.4 percentage points. results.elections.myflorida.com
In the agriculture commissioner’s race, Democrat Nikki Fried won 4,032,954 votes, or 50.04%, defeating Republican Matt Caldwell, who received 4,026,201 votes, or 49.96%. Fried’s winning margin was 6,753 votes, approximately 0.08 percentage points. uselectionatlas.org
| 2018 statewide race | Candidate | Party | Votes | Percentage |
|---|---|---|---|---|
| Governor | Ron DeSantis — winner | Republican | 4,076,186 | 49.6% |
| Governor | Andrew Gillum | Democratic | 4,043,723 | 49.2% |
| Agriculture commissioner | Nikki Fried — winner | Democratic | 4,032,954 | 50.04% |
| Agriculture commissioner | Matt Caldwell | Republican | 4,026,201 | 49.96% |
Table lists the two leading candidates in each race. Governor’s percentages include votes cast for other candidates. results.elections.myflorida.com
Those results give substance to the discussion about investment and competitiveness. Campaign funding can support organization and outreach, but these election totals alone do not establish how much national spending influenced either outcome.
Gillum nearly captured the governor’s office; Fried secured a statewide Cabinet seat. That difference remains central to evaluating political progress: Smaller losing margins can indicate opportunity, while victories determine who exercises authority.
A Stronger Platform, With Challenges Ahead
Florida’s results give DeSantis a stronger position from which to argue that his approach deserves attention within the Republican Party.
Yet the election also supplied a warning for his party at home. Republicans preserved statewide leadership while Democrats demonstrated greater strength in legislative contests.
As Donalds prepares to succeed him, DeSantis leaves with Florida’s Republican governing structure intact. Whether that record becomes the foundation for a larger national role will depend on how Republican voters and leaders respond to the party’s defeats.
Florida
Florida Republicans sweep statewide races; Democrats break House supermajority
Published
1 day agoon
November 4, 2026Republicans retain the governor’s office, all three Cabinet posts, both legislative chambers and both U.S. Senate seats, while Democratic gains end the GOP’s House supermajority.
TALLAHASSEE, Fla. (FNN) — Republicans swept Florida’s statewide races Tuesday and retained control of both legislative chambers, extending Democrats’ statewide losing streak despite gains that ended the GOP’s supermajority in the Florida House.
Republican Byron Donalds defeated Democrat David Jolly for governor, while U.S. Sen. Ashley Moody defeated Democratic state Rep. Angie Nixon. Republicans also won the races for attorney general, chief financial officer and agriculture commissioner. www.fox13news.com
The results preserve Republican control of the governor’s office, all three Cabinet posts and both of Florida’s U.S. Senate seats. Republican Sen. Rick Scott, reelected in 2024, was not on this year’s ballot. www.rickscott.senate.gov
Democrats have not won a statewide election since Nikki Fried captured the agriculture commissioner’s office in 2018. www.wlrn.org
Florida statewide results and winning margins
Unofficial returns available Nov. 4 showed Republicans winning all five statewide contests. The figures reflect separate reporting snapshots; totals and margins may change before certification.
| Office | Republican: votes (percentage) | Democrat: votes (percentage) | GOP vote margin | Margin in percentage points |
|---|---|---|---|---|
| Governor | Byron Donalds: 4,132,334 (50.02%) | David Jolly: 4,024,639 (48.71%) | 107,695 | 1.31 |
| Attorney general | James Uthmeier: 4,177,901 (50.93%) | Jose Javier Rodriguez: 4,024,563 (49.07%) | 153,338 | 1.86 |
| Chief financial officer | Blaise Ingoglia: 4,151,579 (50.94%) | Annette Taddeo: 3,997,932 (49.06%) | 153,647 | 1.88 |
| Agriculture commissioner | Wilton Simpson: 4,160,577 (51.08%) | Joey Mendoza Atkins: 3,984,621 (48.92%) | 175,956 | 2.16 |
| U.S. Senate | Ashley Moody: 4,207,947 (50.87%) | Angie Nixon: 3,969,186 (47.99%) | 238,761 | 2.88 |
Source: Florida Department of State’s Election Watch. The governor’s race was the closest of the five. Other candidates account for the remaining vote shares where applicable. Governor
Democratic gains end Republican House supermajority
Republicans retained their legislative majorities, but Democratic gains ended the GOP’s House supermajority.
The Florida Democratic Party reported a net gain of 15 House seats and a Republican-to-Democratic flip in Senate District 10, where John Lowndes defeated Jason Brodeur. Florida Democratic Party
Among the House pickups listed by the party were Eric Gray in District 35, Darryl Block in Dist,rict 36, Jane Aman in District 37, Nik Dean in District 38 and Jarod Fox in District 39. Other listed victories included Todd Delmay in District 101 and Lucia Baez-Geller in District 106. Florida Democratic Party
The party’s district list marked 16 House seats as Republican-to-Democratic flips, while its announcement reported a net gain of 15. Gross pickups and net gains measure different things; the net figure also accounts for Democratic losses. News Service of Florida reported Republicans were positioned to recapture House District 87 from Democrat Emily Gregory. Florida Democratic Party
House District 33, where Democrat Daniel McDow faced Republican Monique Miller, remained close enough for a recount, leaving the final legislative tally unsettled. WUSF
Ending the House supermajority limits Republicans’ ability to act without Democratic support on matters requiring a two-thirds vote. Republicans nevertheless retain control of legislative leadership and the ordinary lawmaking agenda. WUSF
GOP registration advantage exceeds 1.5 million
Republicans entered the election with a substantial voter registration advantage.
Florida’s Sept. 30 report listed 5,678,755 active registered Republicans and 4,133,397 Democrats — a Republican lead of 1,545,358. Another 3,345,188 voters had no party affiliation, and 514,782 belonged to minor parties. dos.fl.gov
The GOP’s statewide winning margins were far smaller than its registration advantage. But registration totals do not reveal how individual voters cast their ballots, and the results alone cannot separate the effects of turnout, crossover voting and support from unaffiliated voters.
Gillum’s 2018 showing tops Jolly’s current result
Former Democratic gubernatorial nominee Andrew Gillum received more votes, a larger vote share and a smaller losing margin in 2018 than Jolly recorded in the unofficial 2026 returns.
Gillum received 4,043,723 votes, or approximately 49.19%, against Ron DeSantis’ 4,076,186 votes, or 49.59%. His certified defeat was 32,463 votes, approximately 0.40 percentage points. results.elections.myflorida.com
Jolly’s current tally is 4,024,639 votes, or 48.71%, leaving him 107,695 votes behind Donalds. Governor
Gillum received 19,084 more votes and finished 0.48 percentage points higher than Jolly’s current showing. His losing vote margin was 75,232 smaller.
Jolly, a former Republican congressman, left the GOP in 2018, became an independent and later joined the Democratic Party before launching his gubernatorial campaign in 2025. www.pbs.org
The comparison involves different electorates and political conditions, and Jolly’s totals remain unofficial. It does not establish that his previous Republican affiliation caused his defeat.
Certification still ahead
Florida’s Elections Canvassing Commission is scheduled to certify statewide results Nov. 17. Outstanding ballot processing and any required recounts could change the unofficial totals before then. Time line
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