What can the Fed do to help Main Street, not Wall Street?
By Martha C. White
The markets continued their downward trajectory Monday in spite of a sweeping pledge from the Federal Reserve to support the economy as coronavirus shutdowns accelerated around the country. With consumer spending crippled by “stay at home” orders, many workplaces shuttered and an increasing number of employees laid off, the Fed’s unprecedented intervention was still not enough to hold off another market plunge. …”None of these facilities does anything directly for households or small businesses,” said Karen Shaw Petrou, managing partner of the consulting firm Federal Financial Analytics. Even the pledge to support Main Street businesses would fall short for many, because eligibility would depend on having an investment-grade rating. “Small businesses aren’t rated by anybody,” she said. “It’s not helping where the hurt is the greatest.”