Mar 25, 2020
With the coronavirus pandemic disrupting more and more businesses, it has been another tough week in the financial markets. In this episode, Grant reviews what has happened in the financial markets recently, some of the available policy options, and what they could mean for you. Toward the end of the episode, Grant shares his take on where the economy is heading at the moment.
If you have specific questions you’d like us to cover, visit growmoneybusiness.com, and drop your questions in the Mailbag section. Grant will answer your questions in a future episode.
[01:44] Recent Events – Grant reviews what has happened in the financial markets last week.
[06:01] The Federal Reserve – Grant explains the Federal Reserve’s role in keeping the economy stable.
[09:15] Federal Funds Rate – The Federal Open Markets Committee recently decided to reduce the federal funds rate by a full percentage point. Grant talks about the reason behind this decision and how the federal funds rate works.
[12:44] Fiscal Stimulus – The government is planning to cut checks to U.S. adult citizens in an attempt to help people get through this crisis. Grant explains how this fiscal stimulus works.
[18:19] Loans for Small Businesses – A part of the fiscal stimulus is meant to give loans to small businesses. Grant talks about the process of obtaining these loans.
[20:57] Bailout for Airlines – Last week, Airlines for America, a trade organization for the U.S airline industry, asked the secretary of the treasury for a bailout. Grant shares his take on the controversial nature of this.
[23:02] Stock Buybacks – Grant explains what stock buybacks are, and how the airlines have been doing it for years.
[28:44] Where We Are at Now – Grant shares his take on the current status of the economy, and what we might expect in the next few weeks.
Resources:
Episode 02: An Overview of SBA lending with Joe McClure & Chris
Boessenecker – bit.ly/2QCF9Eg
Federal Funds Rate: bit.ly/2Utxqti
Stock Buybacks: A Breakdown: bit.ly/2QEKI4K
The Federal Reserve: bit.ly/2xV55nR