Jerome Powell does his best Andy King

[The beef 675] [I'm an image] “Pulling $4.5T out of thin air is much more impressive than anything David Blaine has ever done.” - Jeff Hey there carnivores, Markets were up Thursday, ending their best week since 1938. Today we’re talking about the lengths the Fed is willing to go to. Keep raging, Jeff & Jason [Image] [I'm an image] Safety Fed Jerome Powell [went ID-4]( on Thursday, telling the world that the Federal Reserve is prepared to do whatever it takes to help the US recover. In fact, J-Poww was so jacked up, he announced an additional $2.3T will be made available to US economic recovery efforts. Ok, maybe he thought about it a little bit before the announcement. The new funding help states, cities and mid-sized companies who are on the struggle bus thanks to coronavirus, as well as companies whose bonds have recently, or will soon be downgraded. Looking at you Ford! Basically, it looks to provide funds to a large group of revenue-generating entities that were short-changed by the CARES act. Let’s break it down In total, the Fed is either [expanding or initiating nine programs]( that will distribute loans to large and medium-sized corporations, in addition to supporting banks who lend to small businesses covered in the CARES act. It’s probably not a good sign that the total “additional” funds are more than the “original” but alas, here we are. $600B is being set aside for “mid-sized” businesses with less than 10k employees and under $2.5B in revenue. These loans will be at least $1M, and up to $25M. Additionally, another program will make $500B available to states and cities in the form of loans. Jerome made it very clear that the funds from the Fed were loans, not grants, and being given out to companies who are solvent and are expected to be paid back. Anything else? Yup. Arguably the most noteworthy initiative of the wide-ranging stimulus announcement, is that the Fed will begin [buying junk-rated bonds](, along with ETFs that focus on high yield debt. Before Thursday Jerry Interest Rates had vowed to stick to investment-grade corporate debt. But desperate times call for desperate measures, so Jerry and the Fed will make exceptions for so-called ["fallen angels"]( (companies whose debt got downgraded recently because of the current situation). The Fed’s balance sheet has grown to $6T, up from $4.2T in February. But the checkbook isn’t going away as Congress and the Treasury are backing a portion of any funds it might lose during this lending period. Not bad references to have. The bottom line... This is the first time the Fed has [gone to this extent]( to help businesses themselves. Even in 2008, the Federal Bank let the White House and Congress determine what companies would get funding. So what’s different now? Credit. The Fed is looking to act as either the direct lender or support lenders so that they can continue extending credit to those who need it. If credible businesses need loans, or banks need to support their balance sheet, the funds will be available. This is a sign that the Fed plans to do anything (and we do mean anything) necessary to keep the economy from completely coming off the rails. Andy King would be proud. [Image] During Periods Of Extreme Volatility... Less Is More [I'm an image]( In March, Ben Sturgill Returned 514.6% He Did It By Taking One Trade On The Same Symbol Each Day Find Out How You Can Do This Too When He Goes Live On April 15—At 2 PM ET [Register Now]( [I'm an image] ☑️ Adding up. Just keep the tab open... 6.6M people [filed for unemployment]( in the week ending on April 4. Counting that more than 10M from the weeks prior, this means that nearly 17M people (because, math) have sought unemployment benefits since mid-March, no doubt due to coronavirus. Stay-at-home orders across the country are clearly raining on employee's parades… and while there were initial hopes of opening the economy back up by Easter (spoiler: this did not happen), Treasury Secretary Steve Mnuchin said that he believes the US could reopen by the end of May. In the meantime, please be sure to thank your local grocery cashier. ☑️ Going mainstream. HODLers rejoice. Actual company (!) Visa and cryptocurrency startup, Fold, [are joining forces](. The two will combine to offer a debit card that earns rewards in bitcoin instead of airline miles or cash… because let’s be honest, you’re not flying anywhere anytime soon anyway. Forget the 2% cashback from other cards, this new plastic, which will be released in July, will give a reward as high as 10% of the purchase. Fold’s CEO, Will Reeves, believes that while people might not understand bitcoin as a currency, they might understand it better as a reward. Soo, like tickets from Dave & Busters? Still don’t get it. ☑️ Ransom with a side of scandal. Travelex and its parent company Finablr have had an ‘interesting’ few months… It’s been revealed that the foreign-exchange company [paid a ransom]( of 285 bitcoin (or roughly $2.3M in real currency) to hackers that infiltrated its networks. Soft. The attack, which occurred on New Year's Eve, left some systems offline for weeks. At least “get our systems back online” is a good resolution. This occurred just months prior to Finablr’s accounting and governance scandal that [caused its auditor](, Ernst & Young, to resign. Why? Well the $100M in checks that were used for "undisclosed financing" prior to its 2019 IPO had a lot to do with it... ☑️ That’s a relief. State Farm Insurance is here for you, [slashing $2B in premiums]( that are owed on 40M vehicles. Thanks Jake. This relief program should benefit roughly 21M households across the good ol’ US of A by offering a 25% policy credit on premiums due from March 20 to May 31. Now that Pat Mahome's favorite auto insurer has joined the club, this means that the top 10 auto-insurance sellers have created new initiatives to help out their customers. Shelter-in-place policies have caused a decrease in driving, with State Farm reporting a 35% decline in policyholder mileage since March 21. RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 Neither Raging Bull nor RagingBull.com, LLC (publisher of Raging Bull) is registered as an investment adviser nor a broker/dealer with either the U. S. Securities & Exchange Commission or any state securities regulatory authority. Users of this website are advised that all information presented on this website is solely for informational purposes, is not intended to be used as a personalized investment recommendation, and is not attuned to any specific portfolio or to any user's particular investment needs or objectives. Past performance is NOT indicative of future results. 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