Politics

Fed to buy unlimited government debt and lend to businesses

Published

7 years ago

March 23, 2020

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.”

IMPACT ON THE ECONOMY:

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.

Full Coverage: Economy

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.

Florida

Civil Rights Group Honors Nobel Peace Prize Winner Navi Pillay, Highlights Florida’s Trayvon Martin Connection

Published

1 day ago

October 13, 2026

FNN NEWS

FCRA representatives address reporters beside a “Justice for Trayvon” sign outside Florida’s regional offices in Orlando.

The Florida Civil Rights Association (FCRA) held a press conference outside the State of Florida’s regional offices in Orlando in 2012, calling on then-Gov. Rick Scott to take action following Trayvon Martin’s killing. Photo by FCRA

The Orlando-based civil rights association recalls supporting the former U.N. human rights chief’s 2012 call for an investigation into the teenager’s killing in Sanford.

ORLANDO, Fla. (FNN) — The Florida Civil Rights Association is congratulating 2026 Nobel Peace Prize winner Navanethem “Navi” Pillay, recalling her call for an investigation into Trayvon Martin’s killing and the international attention it brought to questions of racial equality and justice in Florida.

The Norwegian Nobel Committee announced Pillay’s selection Oct. 9 for her efforts to promote peace and international law. The South African jurist served as United Nations high commissioner for human rights from 2008 to 2014 and helped shape landmark international court decisions.

In a press release, FCRA President J. Willie David III said Pillay’s intervention connected a Florida family’s demand for answers to a broader concern for human rights.

“Pillay’s call for an investigation reinforced that a family’s demand for justice in Sanford mattered beyond Florida and the United States,” David said.
“We welcomed her intervention in 2012 because families deserve answers and the law must protect everyone equally.”

UN Human Rights Commissioner Navi Pillay (Photo credit: UN Photo/Jean-Marc Ferre)

FCRA recalls its response in 2012

Martin, an unarmed Black 17-year-old, was fatally shot by neighborhood watch volunteer George Zimmerman on Feb. 26, 2012, in Sanford, northeast of Orlando.

In April 2012, Pillay called for an immediate investigation into the killing as the case drew international attention and scrutiny of Florida’s Stand Your Ground law.

FCRA welcomed that call. The association’s current release cites an April 7, 2012, West Orlando News report that quoted David discussing the case’s global impact.

“The shooting death of Trayvon Martin and Florida’s Stand Your Ground Law have created a worldwide movement that calls into question how justice is delivered to victims of color,” David said at the time, according to the release.

FCRA describes the activism surrounding Martin’s death as a defining moment that galvanized a new generation of civil rights advocates.

Zimmerman was charged with second-degree murder and acquitted in July 2013. In February 2015, the U.S. Justice Department closed its separate investigation, finding insufficient evidence to pursue federal criminal civil rights charges.

Why Florida’s case drew global scrutiny

The Florida connection shows how the handling of a local killing can draw international scrutiny over racial discrimination, access to justice and the protection of human rights.

Pillay’s intervention brought those concerns into the international discussion surrounding Martin’s death. In September 2013, U.N. human rights experts also urged the United States to complete its civil rights investigation and examine concerns about racial profiling.

The significance lies in human rights oversight: how public institutions investigate deaths and provide equal treatment can attract attention beyond national borders. Pillay’s call was an appeal for investigation, rather than an international court judgment about Zimmerman’s guilt or Florida’s compliance with international law.

For FCRA, that connection remains relevant to how Florida leaders evaluate laws and practices affecting the communities they serve.

Pillay’s record in international justice

Pillay challenged discrimination under apartheid before serving on South Africa’s High Court, the International Criminal Tribunal for Rwanda and the International Criminal Court.

At the Rwanda tribunal, she was part of the judicial panel that established that rape and sexual violence can constitute acts of genocide, a landmark development in international criminal law.

David said honoring that career should also encourage accountability at home.

“Her Nobel Peace Prize recognizes a career built on confronting injustice through the rule of law,” he said. “Honoring that work means demanding transparent investigations and equal protection here at home. Rights belong to everyone.”

A renewed call for fairness in Florida

FCRA urged Florida leaders to safeguard impartial investigations, examine whether Stand Your Ground and other laws are applied fairly, and address policies or practices that produce discriminatory outcomes.

Founded in 2005, the association advocates for civil rights, human rights and civil liberties through education, advocacy and accountability. Its statement links Pillay’s international recognition to a continuing demand for fairness and human dignity in Florida.

Florida

Florida Governor Candidates: Donalds Spent Longer as a Democrat; Jolly Reports Longer Republican History

Published

3 days ago

October 11, 2026

FNN NEWS

Byron Donalds, left, and David Jolly, right, pictured in separate portraits with American flags behind them.

Party changes and congressional votes offer a closer look at both candidates’ records on issues affecting Black Americans.

ORLANDO, Fla. (FNN) — Republican Byron Donalds spent nearly seven years as a registered Democrat—longer than Democrat David Jolly’s approximately 18 months in the party. Jolly, however, reports having spent 25 years as a Republican, exceeding Donalds’ approximately 16½ years.

The two major-party candidates for Florida governor have political histories that cross party lines. Their congressional votes offer another basis for scrutiny: Jolly supported repealing the Affordable Care Act, while Donalds opposed major voting-rights and police-accountability proposals. Both also supported other legislation relevant to Black communities.

Why This Article Matters to Voters

Voters can examine previous decisions in public office alongside campaign promises. Party affiliation identifies a political association; legislative records show how candidates acted on specific proposals.

The measures examined here concern health insurance, employment opportunities, voting discrimination, police accountability and racial violence. These issues affect African Americans and the wider electorate, making the candidates’ records relevant to voters deciding who should lead Florida.

Who Spent Longer in Each Party?

Donalds was registered as a Democrat in Collier County from April 2003 until March 2010, according to Florida Politics. He then became a Republican. Jolly left the Republican Party in September 2018, became an unaffiliated voter and registered as a Democrat in April 2025.

Candidate	Time as a Democrat	Time as a Republican
Byron Donalds	Approximately 6 years, 11 months, April 2003–March 2010	Approximately 16 years, 7 months, March 2010–October 2026
David Jolly	Approximately 1 year, 6 months, April 2025–October 2026	25 years, according to his account, before leaving in September 2018

Durations are approximate as of Oct. 11, 2026. Jolly’s 25-year Republican history was reported by WUSF; his original Republican registration date was not independently verified for this comparison.

Donalds’ documented Democratic registration exceeds Jolly’s by approximately five years and five months. Jolly’s stated Republican history exceeds Donalds’ by approximately eight years.

Jolly’s Defeat, Party Change and Return to Electoral Politics

Jolly lost his 2016 congressional reelection bid as a Republican to Democrat Charlie Crist in Florida’s 13th Congressional District. Published election results show Crist received 184,693 votes to Jolly’s 171,149, winning by 13,544 votes.

Crist, a former Republican governor, had already moved from Republican to independent to Democrat. Jolly later followed the same sequence, although that does not establish identical motivations. Reporting republished on Jolly’s campaign website described his departure from the Republican Party as a response to its direction under Donald Trump.

Jolly declined to endorse Trump in 2016, according to Sunshine State News. PolitiFact subsequently found that a Democratic campaign advertisement portraying Jolly as a Trump ally was inaccurate.

After considering but declining another congressional run in 2018, as reported by Roll Call, Jolly returned to electoral politics with his governor campaign. He registered as a Democrat in April 2025, roughly six weeks before announcing his candidacy June 5—more than a year before the 2026 election.

Different Congressional Terms, Relevant Policy Questions

Official congressional biographies show that Jolly served in Congress from March 2014 through Jan. 3, 2017, during President Barack Obama’s administration. His service ended before Trump’s first inauguration. Donalds entered Congress in January 2021 after serving in the Florida House from 2016 through 2020.

Their congressional terms did not overlap, so this comparison examines different bills rather than votes they cast together.

Both served as Republicans during the votes examined below. Their subsequent or previous party affiliations do not change those legislative records.

Jolly Supported ACA Repeal and Workforce Training

Official U.S. House Clerk records show that Jolly voted to repeal the Affordable Care Act on Feb. 3, 2015. The proposal did not become law, but his vote supported removing a framework that expanded health insurance access for African Americans.

According to the U.S. Department of Health and Human Services, the uninsured rate among nonelderly Black Americans fell from 20.9% in 2010 to 10.8% in 2022 following implementation of the ACA’s coverage provisions. Those gains make health coverage relevant to examining repeal proposals, without establishing that Jolly’s unsuccessful repeal vote caused anyone to lose insurance.

House Clerk records also show that Jolly supported the final House agreement to the Workforce Innovation and Opportunity Act on July 9, 2014. The legislation supported training and employment services for people facing employment barriers, including eligible Black workers and young people. Its programs serve people across racial groups, according to the U.S. Department of Labor.

Donalds Opposed Voting-Rights and Policing Bills, Backed Antilynching Measure

House Clerk records show that Donalds voted against the John R. Lewis Voting Rights Advancement Act on Aug. 24, 2021. The proposal sought stronger federal safeguards against racial discrimination in voting, including renewed requirements for certain jurisdictions to obtain approval before changing election practices.

On March 3, 2021, Donalds voted against the George Floyd Justice in Policing Act. The congressional bill summary describes proposed protections against racial profiling and changes to police accountability.

In a statement published by his congressional office, Donalds defended his opposition by arguing that the measure would defund and dismantle policing. That was his characterization of the proposal, whose provisions included measures addressing racial profiling and constitutional violations by law enforcement.

Donalds voted for the Emmett Till Antilynching Act on Feb. 28, 2022, according to House Clerk records, supporting federal legislation addressing lynching through hate-crime law—a measure with particular historical significance for African Americans.

What Voters Can Assess

These selected votes document Jolly’s support for ACA repeal and workforce opportunities, and Donalds’ opposition to major voting-rights and policing proposals alongside support for antilynching legislation.

They do not establish discriminatory intent or determine whose entire record benefited African Americans more. That would require a broader review of policies and measurable outcomes, including Donalds’ Florida legislative record.

Donalds spent longer as a documented registered Democrat, while Jolly reports a longer Republican history. Both cast the congressional votes examined here as Republicans.

Either Major-Party Candidate Would Bring a Republican History

If either of the two major-party candidates wins, Florida’s next governor will bring a substantial Republican history to office—Donalds as a current Republican and Jolly as a former Republican congressman now running as a Democrat. Voters can weigh those histories alongside their legislative records, current positions and plans for Florida.

Central Florida News

Commissioner Uribe Announces New Date for Hispanic Heritage Festival Due to Weather

Published

5 days ago

October 9, 2026

FNN NEWS

ORLANDO, Fla. (FNN) — Commissioner Uribe announced that the Hispanic Heritage Festival has been rescheduled due to weather conditions. The event will now take place Saturday, Oct. 24, 2026, from 9 a.m. to noon at Cypress Grove Park, 290 Holden Ave., Orlando.

The festival will celebrate the rich history, cultures, traditions and contributions of Hispanic and Latino communities through live music, dance performances, food and community resources.

Scheduled highlights include:

Live music by youth orchestra The Nucleus Orchestral.
Dance performances featuring Maria Saavedra of FusionFest with Huellas de Colombia, Unidos for Ecuador and Mexico Dansa.
Food from Zaza.
Community resources from 311 and other participants.

Join Commissioner Uribe and the community for a morning celebrating Hispanic and Latino heritage.

NEW DATE: Saturday, Oct. 24, 2026
TIME: 9 a.m. to noon
LOCATION: Cypress Grove Park
ADDRESS: 290 Holden Ave., Orlando, FL 32839