The Fed’s Contingency Plan for the Next Recession

first_img Demand Propels Home Prices Upward 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago Previous: Spotlight on Financial Services Law Firms Continued Next: Puerto Rico’s Ongoing Housing Recovery Tagged with: Economic Growth housing market 2020 Recession The Fed Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Home / Daily Dose / The Fed’s Contingency Plan for the Next Recession January 28, 2020 1,370 Views Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. Subscribe in Daily Dose, Featured, Government, News Related Articles The Best Markets For Residential Property Investors 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago The Fed’s Contingency Plan for the Next Recession Share Save Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Mike Albanese Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago The Wall Street Journal reported that Federal Reserve Officials are looking at a stimulus scheme last used during and after WWII as part of their contingency plan for the next recession. The Fed capped yields from 1942 to 1951—first on short-term bills and then long-term bonds—to help finance war spending and recovery. During the past three recession, the Fed cut its benchmark rate by around 5 percentage points. The current rate is between 1.5% and 1.75%, which leaves less room to counteract a downturn. Fed officials are unlikely to move this rate during their meetings this week. The Journal states that the Fed’s plan for the next recession will rely heavily on two items it used during the 2007-09 recession—bond purchases, sometimes called quantitative easing, or QE, and forward guidance about plans to hold rates at very low levels for longer than investors expect.The Fed cut interest rates for the third time in 2019 in October, dropping its benchmark lending rate for Federal funds to 1.5% to 1.75%.Doug Duncan, Chief Economist with Fannie Mae, said the Fed cited “implications of global developments,” as the rationale for the cut.Jarred Kessler, CEO of EasyKnock, said that expecting the economy to respond positively to declines in interest rates doesn’t always work out.“Lowering rates doesn’t always have the economic impact we think, or expect it to have because it disrupts the natural economic ecosystem,” Kessler said. “Just look at Japan, it can drive housing growth and a push in the stock market, but other facets of the economy are bound to lose. In the longer term this along with inflation can have a very negative impact.”Duncan, in Fannie Mae’s 2020 economic outlook, said housing will lead economic growth over the next year. “While we believe the strength and resilience of the American consumer is the lynchpin of near-trend GDP growth, this year we expect consumer demand to re-establish housing construction as a significant contributor to economic growth—hence our theme for the year: A resilient economy overcomes risks to drive housing,” said Fannie Mae SVP and Chief Economist Doug Duncan. “Strong labor markets, rising wages, and improved household balance sheets offer consumer spending upside potential, including the ability to withstand minor economic disruptions.”Fannie Mae expects the growing economic strength from housing that emerged in 2019 to carry into the rest of 2020, including solid growth in single-family construction spending and low mortgage rates.Recent studies have indicated that this increased residential construction spending could help limit the negative effects of capital-spending weakness, despite not taking up a large segment of the economy. According to Bloomberg utilizing data from the Atlanta Fed, the stronger U.S. housing market could provide a cushion from the effect of a “derailment” in corporate spending. Economic Growth housing market 2020 Recession The Fed 2020-01-28 Mike Albaneselast_img read more

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Water Co. Makes Upgrades in Ocean City

first_imgSeacliff Road, looking up from Waverly Boulevard, is one of the streets getting new water lines. By DONALD WITTKOWSKINew Jersey American Water Co. is investing $700,000 to upgrade water service and fire protection safety in the Gardens section of Ocean City.The company will replace approximately 2,600 feet of aging water mains on Seacrest Road, Seacliff Road and Seaview Road from Waverly Boulevard to the end of the street starting next week.Old cast iron water lines dating to the 1940s will be replaced with a new 8-inch ductile main on those streets, the company announced in a press release Friday.In what will improve fire protection, the project also includes replacing two fire hydrants and 110 utility-owned service lines along the pipeline route, the company said.“This $700,000 investment will continue to advance water service reliability and increase water flows for household consumption and fire protection in this community. This improvement is part of New Jersey American Water’s multimillion-dollar initiative to accelerate the renewal of water infrastructure that has reached the end of its useful life in more than 100 communities across the state,” the release stated.New Jersey American Water’s local contractor, Pioneer Pipe Contractors Inc., will begin work on or about Jan. 11 and expects to finish by the end of April, weather permitting. Work hours will be from 7 a.m. to 5 p.m., Monday through Friday.Work outside of those hours is not expected unless required to maintain the project’s schedule. Final street restorations will be completed by Ocean City in the summer of 2021, according to the release.To make construction safer for the public and workers, traffic restrictions or alternating traffic patterns are likely to occur during work hours. All emergency vehicles and local traffic will be allowed access during construction.“New Jersey American Water values the safety of its workers and advises drivers and pedestrians to take caution in the vicinity of work sites,” the company said.The company is asking customers to recognize the essential work being done by its employees and contractors and remind them to adhere to social distancing rules for everyone’s safety.If a customer sees a crew performing work in their area, and wishes to ask a question about it, they are encouraged to visit or the company’s Facebook or Twitter pages, or call Customer Service at (800) 272-1325.last_img read more

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3 Binghamton pools to open for the 4th of July

first_img(WBNG) — Mayor Rich David released an outline of changes to the City of Binghamton’s 2020 summer programming, including three city pools opening at reduced capacity on July 4. They have created a free online alternative with arts and crafts and games for kids. The website also offers programming for teens, adults, and seniors. Mayor David said the city will waive pool admission fees for the summer. The three large pools will open at 50% capacity: Mayor David also said that children under 7-years-old must be with an adult, and admission will be on a first-come, first-served basis.  He said the city’s small pools in MacArthur Park and Fairview Park will not open this summer.  Mayor David also said that due to coronavirus concerns, the city will not be offering its five-week Summer Fun program this year. center_img He said the pools will enforce new rules to ensure they comply with New York State guidelines. Pool decks and locker rooms will be closed, and any individuals inside the fenced area must be in the pool.  He also said the youth sports that were canceled in the spring will be offered in different capacities this summer and will be free for city residents. It will include week-long camps for T-ball and 8U softball and baseball. The city will host a league for older age groups if enough people sign up. Cheri A. Lindsey Memorial Park pool — 120 swimmersSouthside Park pool — 91 swimmersRecreation Park pool — 102 swimmers For more information call the Parks and Recreation Department at (607) 772-7017.last_img read more

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