- US Federal Reserve Chairman Jerome Powell has expanded lending beyond banks to combat the coronavirus economic crisis.
- While Powell lacks formal economic training, his background (investment banking, private equity) give him insights on how to stimulate main street business activity.
- After cutting interest rates to 0% in March, Powell asked the Treasury for permission to lend directly to private businesses and municipalities.
- $454 billion of the $2.2 trillion coronavirus stimulus is earmarked for such lending.
- Powell’s approach has earned praise from Trump and Democrats.
