The Fed’s COVID-era policies shifted public resources to large corporate capital holders.

Evidence

As a state institution exempt from democratic oversight, the Fed exercises full power over monetary policy, prioritizing inflation control over social redistribution. Since the 1980s, the Fed’s power has continued to grow, reaching unprecedented levels during the COVID-19 crisis. At that time, the Fed claimed the authority to lend unlimited funds to industrial corporations, regardless of their creditworthiness, effectively risk-proofing their debt and blurring the distinction between public and private debt. Indeed, large corporations did very well: The Fed purchased corporate debt from massive companies, and the federal government initiated the Paycheck Protection Program, which, while targeted at small businesses, ended up lending $1 billion to publicly traded companies, including airlines, cruise companies, and hotel chains. — Clara E. Mattei, Escape from Capitalism, 377

Categorization

• SHARE: The $1 billion PPP flowing to publicly traded companies is a striking, concrete datum worth sending to anyone tracking pandemic corporate welfare.
• XREF: connects to: The Federal Reserve acted subservient to banks while posing as a regulator — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 2082; Banks with Fed directorships were more likely to receive TARP funds — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 2083; Federal Reserve crisis lending quietly enlarged the biggest banks at taxpayer expense — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 508 (+2 more)