Fed Chair Powell Misleads House Hearing on Wall Street’s Bailout Programs

Fed Chair Powell Misleads House Hearing on Wall Street’s Bailout Programs

It’s factually incorrect for the Fed Chairman to say that it can only make emergency loans with the approval of the Treasury. Months before there was any case of COVID-19 anywhere in the world the Fed was making hundreds of billions of dollars a week in emergency repo loans to Wall Street trading houses. The emergency loans started on September 17, 2019 – four months before the first reported case of COVID-19 in the United States. By January 27, 2020 the Fed’s ongoing cumulative loans to bail out Wall Street’s hubris tallied up to an astounding $6.6 trillion. (See Fed Repos Have Plowed $6.6 Trillion to Wall Street in Four Months; That’s 34% of Its Feeding Tube During Epic Financial Crash.)

House Democrats nominated Nancy Pelosi to serve as speaker in the next session of Congress in leadership elections on Wednesday.

House Democrats nominated Nancy Pelosi to serve as speaker in the next session of Congress in leadership elections on Wednesday.

House Democrats also backed Pelosi’s top deputies to remain in their leadership positions with House Majority Leader Steny Hoyer of Maryland elected to continue on in his role and Rep. James Clyburn of South Carolina re-elected House Majority Whip, retaining the third-in-line leadership post.