Powell Says Fed Making Changes to Main Street Program

The transcript discusses the Main Street lending program, highlighting its design, challenges, and current status. It addresses the need for risk clarification by Congress, the Treasury's zero-loss target, and the program's legal framework under section 13. The discussion also covers underwriting expectations and the need for improvements to make the program more accessible to businesses in need.

What is the main issue causing disagreement among the Federal Reserve, Congress, and the Treasury regarding the Main Street Lending Program?

• The interest rates on loans

• The geographical reach of the program

• The number of participating banks

• The risk tolerance levels

What is the current status of the Main Street Lending Program in terms of bank and borrower participation?

• It is only available to large corporations.

• It is not yet operational.

• It has significant participation and is growing.

• It has minimal participation from banks and borrowers.

According to surveys, what is not considered a top problem for firms in the lending world?

• High interest rates

• Credit constraints

• Excessive paperwork

• Lack of borrowers

What legal requirement must be met for the Main Street Lending Program to make loans?

• Loans must be approved by Congress.

• Loans must be made to insolvent borrowers.

• Loans must be made to solvent borrowers.

• Loans must have zero interest rates.

What is one of the challenges faced by businesses in accessing loans from the Main Street Lending Program?

• Lack of available funds

• Businesses being relatively shut down

• High competition among borrowers

• Excessive government intervention