President Trump is waiving interest on all student loans owed to the federal government, he remarked at his press conference.
TheStreet will learn more about this in the coming days. For now, this seems, on the surface a positive for the consumer.
For the federal government, this may not be ideal. Wall Street is calling for fiscal stimulus in the face of what could be a recession caused by the Coronavirus. The positive impact of monetary stimulus is fading and the government needs to have cash.
In stocks, after President Trump declared a state of national emergency over the coronavirus, stocks continued their strong gains in the U.S. All three major indexes rose, with the S&P 500 up more than 9% on the day. Many strategists note that bulls have been out in bits and pieces this week, buying stocks.
The S&P 500 is still 24% off of its all-time high, marking the first bear market since before the Great Recession and the end of the bull market that preceded that recession. It was the longest bull market in American history.
There may be more downside on the market, near-term, according to many strategists. But for long-term investors, Lindsey Bell, chief investment strategist for Ally Invest has a word of advice:
“If you’re a long-term investor, and already have a diversified or managed portfolio…[and] if you have cash on the sidelines you may consider using a portion of it to take advantage of cheaper stock prices.”
The Fed wants the banking system to be prepared.
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