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ph fedaction financial regulatory updates

Daily Financial Regulation Update --Tuesday, August 18, 2020

August 18, 2020

By FedACTion Task Force

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to read more from our Coronavirus series.

Congress

to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), Enacted March 27, 2020.

to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.

to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.

from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.

Federal Agencies

Federal Reserve Bank of New York

Are Financially Distressed Areas More Affected by COVID-19?

August 17, 2020

The Federal Reserve Bank of New York’s Liberty Street Economics blog released a post exploring differences in COVID-19 incidence by areas of financial vulnerability. The authors previously found that majority-minority areas, low-income areas and areas with higher population density were more affected by COVID-19. The objective of the post is to understand any differences in COVID-19 incidence by areas of financial vulnerability. The post is the first in a three-part series looking at heterogeneity in the credit market as it pertains to COVID-19 incidence and CARES Act debt relief.

U.S. Economy in a Snapshot

August 17, 2020

The Federal Reserve Bank of New York released its August post under its U.S. Economy in a Snapshot series. According to the overview, consumer spending continued to rebound in June 2020, housing activity continued to recover in June 2020 and real business equipment spending plunged in the second quarter of 2020. In addition, payroll employment increased at a slower pace in July 2020, U.S. equity indices rose over the last month and core personal consumption expenditure inflation remained below the Federal Open Market Committee’s longer-run objective.

Empire State Manufacturing Survey

August 17, 2020

The Federal Reserve Bank of New York released its monthly survey of manufacturers in New York. According to the August 2020 Empire State Manufacturing Survey, business activity edged slightly higher in New York. The headline general business conditions index fell fourteen points to 3.7, signaling a slower pace of growth than in July 2020. New orders were little changed, and shipments increased modestly. Unfilled orders were down, and inventories declined. Employment inched higher, while the average workweek declined. Input prices increased at about the same pace as last month, while selling prices increased for the first time in several months. Firms remained optimistic that conditions would improve over the next six months, though optimism fell for a second consecutive month.