After a New York Times reporter contacted Biz2Credit, a company agent quickly called Mr. Greenfield and untangled his application. Within hours, he had the paperwork to finalize his loan for the correct amount. He was happy with the outcome but infuriated by the process.

Rohit Arora, the chief executive of Biz2Credit, acknowledged that Mr. Greenfield was not alone in his frustration. “We were thrown off guard by the S.B.A. shutdown,” he said. “They’re running a very chaotic program. There hasn’t been much communication.”

Biz2Credit processed more than 182,000 P.P.P. loans this year, but Mr. Arora estimated that he had tens of thousands of stranded applications that his company would be unable to fund. “For the last week, we’ve been slammed,” Mr. Arora said. “The customers have been very angry, very frustrated, very scared. I can understand.”

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A Fed vice chair says trying to choke off inflation could ‘constrain’ the recovery.

Randal K. Quarles, the Federal Reserve’s vice chair for supervision and regulation, said that the central bank was monitoring inflation but that for now it expected the pickup underway to be temporary — and that reacting too soon would come at a cost.

“For me, it’s a question of risk management,” Mr. Quarles said during testimony before the House Financial Services Committee. “History would tell us that the economy is unlikely to undergo these inflationary pressures for a long period of time.”

Mr. Quarles pointed out that after the global financial crisis, the central bank lifted interest rates to guard against inflationary pressures. The expected pickup never came, and in hindsight the moves were “premature,” he said. He suggested that the central bank should avoid repeating that mistake.

“We’re coming out of an unprecedented event,” Mr. Quarles said, noting that officials have the tools to tamp down inflation if it does surprise central bankers by remaining elevated. The Fed could dial back bond purchases or lift interest rates to slow growth and weigh down prices.

recent and rapid pickup in consumer prices. The back and forth underlined how politically contentious the Fed’s patient approach to its policy could prove in the coming months. Inflation is expected to remain elevated amid reopening data quirks and as supply tries to catch up to consumer demand.

Some lawmakers pressed Mr. Quarles on how long the Fed would be willing to tolerate higher prices — a parameter the central bank as a whole has not clearly defined.

When it comes to increases, “I don’t think that we can say that one month’s, or one quarter’s, or two quarters’ or more is necessarily too long,” Mr. Quarles said. He noted that it was possible that inflation expectations could climb amid a temporary real-world price increase. But if that happened and caused a “more durable inflationary environment, then the Fed has the tools to address it,” he said.

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Fed Minutes April 2021: Officials Hint They Might Soon Talk About Slowing Bond-Buying

Federal Reserve officials were optimistic about the economy at their April policy meeting, and they began to tiptoe toward a conversation about dialing back support for the economy, as government support and business reopenings fueled consumer spending and paved the way for a rebound.

Fed policymakers have said they need to see “substantial” further progress toward their goals of inflation that averages 2 percent over time and full employment before slowing down $120 billion in monthly bond purchases. The buying is meant to keep borrowing cheap and bolster demand, hastening the recovery from the pandemic recession.

Officials said “it would likely be some time” before their desired standard was met, minutes from the central bank’s April 27-28 meeting released Wednesday showed. But they noted that a “number” of officials said that “if the economy continued to make rapid progress toward the committee’s goals, it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases.”

Confusing, and at times conflicting, data released since the April 27-28 gathering could make the Fed’s assessment of when to dial back support — or even to start talking about doing so in earnest — difficult. A report on the job market showed that employers added far fewer jobs than expected. At the same time, an inflation report showed that an expected increase in prices is materializing more rapidly than many economists had thought it would.

The Fed has also held interest rates near-zero since March 2020, in addition to its bond purchases.

Officials have been clear that they plan to slow down bond buying first, while leaving interest rates at rock bottom until the annual inflation rate has moved sustainably above 2 percent and the labor market has returned to full employment.

Markets are extremely attuned to the Fed’s plans for bond purchases, which tend to keep asset prices high by getting money flowing around the financial system. Central bankers are, as a result, very cautious in talking about their plans to taper those purchases. They want to give plenty of signal before changing the policy to avoid inciting gyrations in stocks or bonds.

Stocks whipsawed in the moments after the 2 p.m. release, falling in the moments after before recovering. The yield on the 10-year Treasury note climbed to 1.68 percent.

Even before the recent labor market report showed job growth weakening, Fed officials thought it would take some time to reach full employment, the minutes showed.

“Participants judged that the economy was far from achieving the committee’s broad-based and inclusive maximum employment goal,” the minutes stated. Officials also noted that business leaders were reporting hiring challenges — which have since been blamed for the April slowdown in job gains — “likely reflecting factors such as early retirements, health concerns, child-care responsibilities, and expanded unemployment insurance benefits.”

When it comes to inflation, Fed officials have repeatedly said they expect the ongoing pop in prices to be temporary. It makes sense that data are very volatile, they have said: The economy has never reopened from a pandemic before. That message echoed throughout the April minutes, and has been reiterated by officials since.

“We do expect to see inflationary pressures over the course, probably, of the next year — certainly over the coming months,” Randal K. Quarles, the Fed’s vice chair for supervision, said during congressional testimony on Wednesday. “Our best analysis is that those pressures will be temporary, even if significant.”

“But if they turn out not to be, we do have the ability to respond to them,” Mr. Quarles added.

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Inflation Fears Rise as Prices Surge for Lumber, Cars and More

Turn on the news, scroll through Facebook, or listen to a White House briefing these days and there’s a good chance you’ll catch the Federal Reserve’s least-favorite word: Inflation. If that bubbling popular concern about prices gets too ingrained in America’s psyche, it could spell trouble for the nation’s central bank.

Interest in inflation has jumped this year for both political and practical reasons. Republicans, and even some Democrats, have been warning that the government’s hefty pandemic spending could push inflation higher. And as the economy gains steam, demand is coming back faster than supply. It’s a recipe for bigger price tags for everything from airline tickets to used cars, at least temporarily.

The Fed, which Congress has put in charge of controlling inflation, thinks the jump in prices this year will fade as data quirks, supply bottlenecks and a reopening-induced pop in demand work their way through the system. For now, officials see no reason to tap the brakes by slowing down large-scale bond purchases or raising interest rates, policy changes that would slacken demand as an antidote to accelerating inflation.

And the Fed has big reasons to avoid overreacting: The problem in the wake of the 2007 to 2009 recession was tepid price gains that risked an economically damaging downward spiral, not fast ones. Inflation far above the central bank’s comfort level hasn’t been a feature of the economic landscape since the 1980s.

data from the Gdelt Project. On Fox News Channel, mentions of inflation have surged to six times the normal rate.

Google searches for “inflation” have taken off, Twitter inflation hashtags have increased, and monthly price data reports have newly become front-page headlines.

The surge in attention comes amid stories of computer chip shortages, gas lines, and surging lumber prices, and also as overall measures of real-world price gains are speeding up.

Consumer Price Inflation surprised economists by rocketing higher in April, data released last week showed, rising by 4.2 percent. While prices were expected to climb for technical reasons, supply bottlenecks and resurgent demand combined to push the data point much higher than the 3.6 percent analysts had penciled in. Fed officials use a different but related index to define their inflation goal.

Eye-popping gains are widely expected to cool down as supply catches up with demand and reopening quirks clear, but as they catch consumer attention, inflation expectations are shooting higher across a range of measures. And that poses a risk.

highest level since 2006 last week. A consumer survey collected by the University of Michigan — and closely watched by top Fed officials — jumped in preliminary May data, rising to 4.6 percent for the next year and 3.1 percent for the next five, the highest level in a decade.

The gap between short- and long-term expectations is echoed in the Federal Reserve Bank of New York’s Survey of Consumer Expectations. Americans’ year-ahead inflation expectations rose to the highest level since 2013 in April, but the outlook for inflation over the next three years has been much more stable.

Fed policymakers have taken heart in the fact that households seem to be preparing more for a short-term pop — something central bankers have said they are willing to look past without lifting rates — than for years of superfast price gains.

But they have been clear that there are limits to tolerable increases, without precisely defining what those would be.

If expectations started to rise “month after month after month,” that would be concerning, Mary C. Daly, president of the Federal Reserve Bank of San Francisco, said during an interview on May 10, before the latest Michigan data were released. She declined to put a number on what would worry her.

Inflation expectations data are notoriously hard to parse, and the consumer trackers tend to be heavily influenced by gas prices. The Fed has recently been using a quarterly measure that has moved up by less. But the speed of recent adjustments has called into question how much acceleration would be a problem, signaling that people have come to accept inflation in a way that will keep actual prices rising.

The inflation outlook is uncertain both because of the unusual moment — the economy has never reopened from a pandemic before — and because the way the government approaches economic policy has shifted over the past year.

The Fed’s new policy approach, adopted last August, both aims for periods of higher inflation and doubles down on the central bank’s full employment goal. Practically, it means the central bank plans to leave rates low for years, and it has helped to justify continuing a huge bond-buying program that the Fed began at the start of the pandemic downturn. Those policies make money cheap to borrow, ultimately bolstering demand for goods and services and helping prices to rise.

At the same time, the federal government has drastically loosened its purse strings, spending trillions of dollars to pull the economy out of the pandemic recession. Both the fiscal and the monetary response are meant to keep households economically whole through a challenging period, so there was also a risk to having less-ambitious policies.

Things will most likely work out, economists have predicted. The demand boom anticipated in 2021 is unlikely to last, because consumers’ pandemic savings will eventually be exhausted. Supply issues should be resolved, though it is not clear when. Many analysts expect prices to moderate over the next year or so.

But some underline that expectations are the vulnerability to watch when it comes to inflation, in case they shift before the smoke clears and prices slow their ascent.

“This is something people are talking about in their daily lives, it’s not just a Washington thing,” said Michael Strain, a researcher at the American Enterprise Institute. “My expectation is that expectations will remain anchored — but it’s clearly a huge risk.”

Jim Tankersley contributed reporting.

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Amid Economic Turmoil, Biden Stays Focused on Longer Term

Administration officials express confidence that recent price surges in used cars, airfare and other sectors of the economy will prove temporary, and that job growth will speed up again as more working-aged Americans are vaccinated against Covid-19 and regain access to child care during work hours. They say Mr. Biden’s $1.9 trillion economic aid package, which he signed in March, will lift job growth in the coming months, noting that new claims for unemployment fell to a pandemic-era low on Thursday.

The officials also said it was appropriate for the president to look past the current crisis and push efforts to strengthen the economy long term.

The two halves of Mr. Biden’s $4 trillion agenda, the American Jobs Plan and the American Families Plan, are premised on the economy returning to a low unemployment rate where essentially every American who wants to work is able to find a job, Cecilia Rouse, the chair of the Council of Economic Advisers, said in an interview.

“The American Rescue Plan was rescue,” Dr. Rouse said. “It was meant as stimulus as we work through this hopefully once-in-a-century, if not longer, pandemic. The American Jobs Plan, American Families Plan are saying, look, that’s behind us, but we knew going into the pandemic that there were structural problems in our country and in our economy.”

Mr. Biden’s plans would raise taxes on high earners and corporations to fund new federal spending on physical infrastructure, care for children and older Americans, expanded access to education, an accelerated transition to low-carbon energy and more.

Those efforts “reflect the empirical evidence that a strong economy depends on a solid foundation of public investment, and that investments in workers, families and communities can pay off for decades to come,” Mr. Biden’s advisers wrote. “These plans are not emergency legislation; they address longstanding challenges.”

The five-page brief focuses on arguments about what drives productivity, wage growth, innovation and equity in the economy. The issues predate the coronavirus recession and recovery, and Democrats in particular have pledged for years to address them.

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The Paycheck Protection Program is out of money and closed to most new applications.

Four weeks before its scheduled end, the federal government’s signature aid effort for small business ravaged by the pandemic — the Paycheck Protection Program — ran out of funding on Tuesday afternoon and stopped accepting most new applications.

Congress allocated $292 billion to fund the program’s most recent round of loans. Nearly all of that money has now been exhausted, the Small Business Administration, which runs the program, told lenders and their trade groups on Tuesday. (An earlier version of this item misstated that the actions it described occurred Wednesday.)

While many had predicted that the program would run out of funds before its May 31 application deadline, the exact timing came as a surprise to many lenders.

“It is our understanding that lenders are now getting a message through the portal that loans cannot be originated,” the National Association of Government Guaranteed Lenders, a trade group, wrote in an alert to its members Tuesday evening. “The P.P.P. general fund is closed to new applications.”

the latest government data. Congress renewed the program in December’s relief bill, expanding the pool of eligible applicants and allowing the hardest-hit businesses to return for a second loan.

Lawmakers in March extended the program’s deadline to May, but they have shown little enthusiasm for adding significantly more money to its coffers. With vaccination rates increasing and pandemic restrictions easing, Congress’s focus on large-scale relief effort for small businesses has waned.

Two new grant programs run by the Small Business Administration — for businesses in the live-events and restaurant industries — began accepting applications in recent weeks, though no grants have yet been awarded.

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Pandemic Relief Fund for Restaurants Is Open, but Cash Will Go Fast

Restaurants, bars, caterers and other food businesses devastated by the pandemic began applying Monday for help from a new $28.6 billion federal aid program, but the money isn’t expected to last long.

Despite a few glitches after thousands descended on the application website for the Restaurant Revitalization Fund when it went live at noon, the process was fairly straightforward, applicants said.

That was a welcome change from the technical problems that have plagued other aid programs run by the Small Business Administration, which is managing the restaurant fund.

“It was impressively smooth,” said Sarah Horak, who co-owns three bars and restaurants in Grand Forks, N.D. She was able to submit her first application just 10 minutes after she logged on to the website.

acknowledged on a webinar last week. He said he hoped Congress would provide more money as needed.

The fund offers grants of up to $10 million. The amount each business can receive equals the difference between its 2019 and 2020 gross receipts, minus certain other federal assistance such as loans from the Paycheck Protection Program.

Alaska Crepe Co., in Ketchikan, Alaska, in 2019. He applied Monday for a grant.

“We’ve had to learn to run really lean this past year,” Mr. Yoder said. The Yoders’ business depends heavily on cruise visitors, and this year — like last year — could be a near-total loss on the tourism front.

Mr. Yoder took a full-time tech industry job last year to support his family and business. “We’re making enough to keep the doors open, but we’re certainly not profitable,” he said. “We’re losing money every day we’re open.”

Tamra Patterson, the owner of Chef Tam’s Underground Cafe in Memphis, was still trying to complete her application late on Monday afternoon. She made it through several steps but then got a message saying her responses had failed the agency’s “knowledge based authentication” check.

The S.B.A. said in a Twitter post that it was having trouble with that portion of the application process. “Your place in line is reserved and you will be able to complete your application shortly,” it informed those experiencing problems.

Ms. Patterson, who is Black, said she had not been approved for any other federal aid programs, including the Paycheck Protection Program. “Every time I tried to apply I ran into some type of hiccup,” she said.

began taking applications for the Shuttered Venue Operators Grant, a $16 billion relief fund for theaters, music clubs and other live event businesses. Nearly 9,500 businesses applied for that relief on the program’s first day, but the agency has not yet issued any grant decisions.

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