“What you’re seeing now is economists agreeing there will be a shortfall in aggregate demand that can be addressed by putting money out into the economy,” Karen Dynan, a senior fellow at the Peterson Institute for International Economics and Treasury Department chief economist in the Obama administration, tells me.

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Dynan says she’s not concerned about the cost, in part because plummeting interest rates have made it cheap for the government to borrow. More importantly, she says, “I don’t think we have a choice right now. The economy urgently needs this support.”

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Washington acted quickly yesterday to assemble yet a third package of aid aimed at pouring money into the economy as the stock market swings wildly and many Americans are working from home and told to stay there. The Trump administration endorsed sending $1,000 in cash payments directly to most if not all Americans, and worrying about the massive spending later. Some, from Sen. Bernie Sanders (I-Vt.) to former Trump administration communications director Anthony Scaramucci, are recommending even bigger cash payouts.

Treasury Secretary Steven Mnuchin “also gave lawmakers a dire warning if they failed to act, saying the unemployment rate could spike to nearly 20 percent from the roughly 3.5 percent level it notched in February, according to three people familiar with his comments, who spoke on the condition of anonymity to reveal internal deliberations,” according to my colleagues Erica Werner, Jeff Stein and Mike DeBonis. (President Trump himself suggested the figure, Bloomberg News reports.)

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Mnuchin told reporters the administration is aiming to send checks out “immediately… And I mean now, in the next two weeks.” Of the deficit impact, he said, “This is not the time to worry about it.” The seriousness of the push for a major fiscal response — coupled with the Federal Reserve announcing a new move to stabilize credit markets — drove stocks to recover some recent losses, with the S&P 500 climbing nearly 6 percent.

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But “reservations expressed by Democrats on Tuesday over various aspects of the package suggested that it could take some time to arrive at a bipartisan agreement that could pass both chambers of Congress,” Erica, Jeff and Mike report.

Senate Majority Leader Mitch McConnell (R-Ky.) “also said the Senate would move as swiftly as possible to approve a $100 billion-plus bill passed in the House last week that boosts paid sick leave, unemployment insurance and free coronavirus testing — despite concerns a number of Senate Republicans have about how the sick-leave provisions in the bill are crafted,” my colleagues write.

This wouldn’t be the first time Washington handed out cash to give the economy a boost. As my colleague Heather Long points out, the feds have done this twice before, most recently during the financial crisis in 2008, when every adult received between $300 and $600, with an additional $300 for every child.

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“In the last recession, checks went out to pretty much everyone who wasn’t a millionaire and filed a U.S. tax return, including Social Security recipients,” Heather writes. “Americans earning at least some income but less than $75,000 got the full amount, while wealthier people got less. The payments were sent by a check in the mail or direct deposit into a bank account.”

Now, she adds, “a $1,000 payment won’t fully compensate people, but experts and politicians say it’s a good first step to help people buy groceries and pay rent. It works out to the equivalent of one week of pay for the typical American, according to the latest Labor Department data, which shows median weekly earnings of $936 for full-time workers.”

The proposal has drawn a surprising amount of support from economists across the ideological spectrum — from former Obama administration economist Jason Furman to Greg Mankiw, a top economic adviser to George W. Bush.

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From CNBC's Jay Yarrow:

The Committee for a Responsible Federal Budget typically focuses on deficit reduction. But Marc Goldwein, the group’s senior policy director, tells me, “This is one of those times borrowing is appropriate.”

Goldwein says policymakers shouldn’t expect a major stimulative bang for the bucks they put in the mail. “For every $1 we spend, we’re going to get 20 or 30 cents,” he says, adding that’s okay, considering the unusual circumstances. “We’re telling people not to go participate in the economy on both the work and consumption side. That’s fundamentally in conflict with stimulus.”

Instead, he argues it’s helpful to think of the payments as a form of “economic stabilization” aimed at keeping Americans afloat financially so they can help drive the recovery once the pandemic subsides.

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One design challenge the plan faces is concentrating payments among the most vulnerable Americans. “In past downturns, wealthier Americans tended to save such money, which blunted the economic aid, but lower-income Americans used it immediately to pay bills, a lifeline for their families and a boost to the economy,” Heather notes.

But only sending cash to those who earned less than, say, $75,000 last year may be complicated by the fact the economic catastrophe is cutting a jagged line across the workforce.

That is, many who earned far more than $75,000 last year may now find themselves with little to no income at all. Goldwein and others suggest a workaround: Send the cash to everybody, then deduct the amount from the 2020 tax refunds of those who earn above the threshold, effectively making it an interest-free loan for wealthier recipients.

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Not everyone is sold on the basic concept. Paul Winfree, a former top policy advisor to President Trump who now leads the Thomas A. Roe Institute for Economic Policy Studies at the Heritage Foundation, says policymakers should pass the House package and then allow it and the Fed moves to take effect.

“We don’t know right now how quickly the economy will rebound,” he says. “We don’t know the ultimate effects of the coronavirus pandemic on the economy or public health… By firing off those fiscal policy tools right now, we’re limiting our hands in the future.”

He said the Trump administration is moving too precipitously because administration officials are governing with an eye on the stock market carnage. “I do think they’re responding to the selloff,” he says. “They should stop, take a deep breath, and let’s wait and see what happens, given the fiscal and monetary policy tools that have already been used.”

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MARKET MOVERS

Coronavirus response in the United States:

Death toll surpasses 100: And experts expect it to rise quickly, my colleagues Reis Thebault, Abigail Hauslohner and Jacqueline Dupree And experts expect it to rise quickly, my colleagues Reis Thebault, Abigail Hauslohner and Jacqueline Dupree report

Military prepares to respond: “Defense Secretary Mark Esper said the U.S. military would provide up to 5 million respirator masks and other items of personal protective equipment to safeguard front-line responders, as well as up to 2,000 specialized ventilators,” the WSJ's Nancy A. Youssef and Gordon Lubold “Defense Secretary Mark Esper said the U.S. military would provide up to 5 million respirator masks and other items of personal protective equipment to safeguard front-line responders, as well as up to 2,000 specialized ventilators,” the WSJ's Nancy A. Youssef and Gordon Lubold report . The military said “it would open its labs, distribute key medical equipment and ready its hospital ships.”

State, local response is still a patchwork: “The disparities across the country set the U.S. response apart from that of nations that have moved in a unified way to try to tamp down outbreaks. The gaps are increasingly drawing the ire of state and local officials who have acted decisively to halt the spread, but worry that their efforts will be for naught if their neighbors don’t follow suit — and if Washington doesn’t act more proactively to set the tone,” my colleagues Griff Witte, Katie Zezima, Ariana Eunjung Cha and Tim Craig “The disparities across the country set the U.S. response apart from that of nations that have moved in a unified way to try to tamp down outbreaks. The gaps are increasingly drawing the ire of state and local officials who have acted decisively to halt the spread, but worry that their efforts will be for naught if their neighbors don’t follow suit — and if Washington doesn’t act more proactively to set the tone,” my colleagues Griff Witte, Katie Zezima, Ariana Eunjung Cha and Tim Craig report

More market fallout:

Wall Street rejects possible shortened trading day: “[Mnuchin’s] suggestion on Tuesday that the country’s stock exchanges might shorten their trading hours did not go over well with investors reeling from Wall Street’s recent plunge …” Reuters's Noel Randewich and April Joyner report.

“In response, CME Group Chairman and Chief Executive Terry Duffy issued a statement objecting to any move to shorten the trading session due to high volatility. CME Group operates the Chicago Mercantile Exchange, the world’s largest derivatives bourse. Intercontinental Exchange Inc, which operates the New York Stock Exchange, said in a statement that its platforms were operating normally and that it was prepared to switch to all-electronic trading if necessary … ‘Shorter hours make no sense,’ CME’s Duffy wrote.”

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The Chamber also opposes such a move: “'You’d cut off capital exactly at the time it’s needed not only for businesses but for investors. That’s exactly the wrong thing to do,' Tom Quaadman, executive vice president for the U.S. Chamber’s Center for Capital Markets Competitiveness, told Reuters,” Chris Prentice “'You’d cut off capital exactly at the time it’s needed not only for businesses but for investors. That’s exactly the wrong thing to do,' Tom Quaadman, executive vice president for the U.S. Chamber’s Center for Capital Markets Competitiveness, told Reuters,” Chris Prentice reports . The chamber also opposes a ban on short selling.

But some asset managers favor a temporary close. “Executives from some of the biggest asset managers told the Bank of England’s new governor on Monday that financial markets should close for two weeks as the world confronts the coronavirus pandemic, people familiar with the matter said,” WSJ's Justin Baer . “Executives from some of the biggest asset managers told the Bank of England’s new governor on Monday that financial markets should close for two weeks as the world confronts the coronavirus pandemic, people familiar with the matter said,” WSJ's Justin Baer reports . Executives from Vanguard Group, BlackRock Inc., and JPMorgan Chase were among those on the call, though it wasn't clear who advocated for the short-term shuttering.

Fed launches commercial paper funding facility: “The Federal Reserve said it would start making loans to American corporations, relaunching a crisis-era tool to help calm short-term debt markets that have faced intensifying strains in recent days,” the WSJ's Nick Timiraos reports. “The Fed trained its sights … on dysfunction in the $1.1 trillion market for short-term corporate IOUs called commercial paper.”

Later Tuesday, the central bank announced it “will enable 24 large financial institutions known as primary dealers, which function as the Fed’s exclusive counterparties when trading in financial markets, to seek loans of up to 90 days… [It] will essentially function as an overnight loan facility for primary dealers, similar to how the Fed’s discount window provides a round-the-clock source of backup funding to banks."

Corporate fallout:

Travel industry seeks $150 billion bailout . Lobbying groups from the travel and tourism industry met with Trump to press for “a travel workforce stabilization fund" and other help, CNBC's Lauren Hirsch . Lobbying groups from the travel and tourism industry met with Trump to press for “a travel workforce stabilization fund" and other help, CNBC's Lauren Hirsch reports

UAW presses automakers to close U.S. plants: “The United Auto Workers union is pressing the Detroit car companies for a two-week shutdown of U.S. factories …” the WSJ's Mike Colias and Ben Foldy “The United Auto Workers union is pressing the Detroit car companies for a two-week shutdown of U.S. factories …” the WSJ's Mike Colias and Ben Foldy report . “Meanwhile, Ford Motor Co. confirmed Tuesday evening it temporarily closed the company’s Chicago assembly plant because of a parts shortage. A nearby Lear Corp. plant that supplies parts to the Ford factory is closing temporarily after two employees tested positive for Covid-19, people familiar with the matter said.”

Democrats resist “blank check” for airlines . “The more than $50 billion in government aid U.S. airlines are seeking as the coronavirus ravages their businesses must include worker and consumer protections, Democratic lawmakers and labor unions said Tuesday. They criticized airlines for spending years of windfall profits buying back their own stock,” per . “The more than $50 billion in government aid U.S. airlines are seeking as the coronavirus ravages their businesses must include worker and consumer protections, Democratic lawmakers and labor unions said Tuesday. They criticized airlines for spending years of windfall profits buying back their own stock,” per CNBC

Tech industry in talks with federal government to use data to track virus: “The U.S. government is in active talks with Facebook, Google and a wide array of tech companies and health experts about how they can use location data gleaned from Americans’ phones to combat the novel coronavirus, including tracking whether people are keeping one another at safe distances to stem the outbreak,” my colleagues Tony Romm, Elizabeth Dwoskin and Craig Timberg “The U.S. government is in active talks with Facebook, Google and a wide array of tech companies and health experts about how they can use location data gleaned from Americans’ phones to combat the novel coronavirus, including tracking whether people are keeping one another at safe distances to stem the outbreak,” my colleagues Tony Romm, Elizabeth Dwoskin and Craig Timberg report . "But such collection could leave many Americans uncomfortable … Multiple sources stressed that — if they proceed — they are not building a government database.”

FedEx suspends 2020 profit outlook: “The package delivery company’s adjusted net income fell to $371 million, or $1.41 per share, in the third quarter ended Feb. 29, from $797 million, or $3.03 per share, a year earlier,” Reuters's Lisa Baertlein “The package delivery company’s adjusted net income fell to $371 million, or $1.41 per share, in the third quarter ended Feb. 29, from $797 million, or $3.03 per share, a year earlier,” Reuters's Lisa Baertlein reports

Uber shares drop nearly 7 percent: The ride-hailing company announced that it was suspending its popular pool service. “Lyft, which also suspended its carpool service, dropped 2.41 percent to $18.66 per share,” CNBC's Jessica Bursztynsky The ride-hailing company announced that it was suspending its popular pool service. “Lyft, which also suspended its carpool service, dropped 2.41 percent to $18.66 per share,” CNBC's Jessica Bursztynsky reports

Boeing seeking “tens of billions” in loan-guarantees: “ The U.S. planemaker has told lawmakers it needs significant government support to meet liquidity needs [two people briefed on the matter told Reuters],” David Shepardson David Shepardson reports . And it is calling for $60 billion for the aerospace industry.

Nevada is shuttering casinos, “marking the first time that the state’s bedrock industry will close since it legalized the practice nearly a century ago,” The Post's Teo Armus , “marking the first time that the state’s bedrock industry will close since it legalized the practice nearly a century ago,” The Post's Teo Armus reports

International fallout:

Trump prepares to tighten border: “The Trump administration is developing a plan to impose emergency border controls that would immediately send migrants who cross illegally back to Mexico, including those who arrive seeking asylum, according to administration officials involved in the preparations,” my colleague Nick Miroff “The Trump administration is developing a plan to impose emergency border controls that would immediately send migrants who cross illegally back to Mexico, including those who arrive seeking asylum, according to administration officials involved in the preparations,” my colleague Nick Miroff reports

Europe is closing its borders: “… In the space of just a week, the coronavirus pandemic has led countries to reimpose hard frontiers across the continent, challenging the European Union's basic model in ways that may reverberate for years,” my colleague Michael Birnbaum “… In the space of just a week, the coronavirus pandemic has led countries to reimpose hard frontiers across the continent, challenging the European Union's basic model in ways that may reverberate for years,” my colleague Michael Birnbaum reports from Brussels. “The about-face in Europe is proving as disruptive as it would be if American states imposed border controls on one another."

2020 WATCH

— Biden adds to his large delegate lead: “Former vice president Joe Biden swept to decisive wins in Florida, Illinois and Arizona, extending his run of victories on a primary election day in which the growing national response to the coronavirus pandemic complicated voting as it threatened to disrupt future contests,” my colleagues Michael Scherer, Annie Linskey and Sean Sullivan report.

“The emphatic wins raised further questions about the viability of the campaign of Sen. Bernie Sanders (I-Vt.). It set Biden, who began the day leading the contest by more than 100 delegates, on a clear course to a first-ballot victory at the Democratic National Convention in July barring a seismic shift in the race’s dynamics.”

The pressure is mounting on Sanders to drop out: “With upcoming primaries likely to be postponed due to the coronavirus pandemic, Democrats increasingly worry that [Biden], who leads the race by a comfortable margin, might not be able to fully turn his focus to Trump before late summer if Sanders stays in,” my colleague Sean Sullivan “With upcoming primaries likely to be postponed due to the coronavirus pandemic, Democrats increasingly worry that [Biden], who leads the race by a comfortable margin, might not be able to fully turn his focus to Trump before late summer if Sanders stays in,” my colleague Sean Sullivan reports

TRUMP TRACKER

TRADE FLY-AROUND:

— China escalates fight over journalists: “Chinese authorities announced that U.S. journalists from The Washington Post, the New York Times and the Wall Street Journal will effectively be expelled from the country as part of retaliation for Trump administration limits on U.S.-based Chinese state media,” my colleague Emily Rauhala reports.

“The move widens another rift in U.S.-China relations already strained by trade disputes and questions over how the world’s two biggest economies will recalibrate their ties after the coronavirus pandemic. In a statement published Tuesday, China’s Ministry of Foreign Affairs said the three U.S. outlets, plus Voice of America and Time magazine, will be designated as ‘foreign missions’ and must report information about their staff, finance, operation and real estate in China …. The moves came after the United States took measures in February against Chinese Communist Party-controlled news outlets operating in the United States. Later, China expelled three Wall Street Journal reporters.”

The Post's response: “We unequivocally condemn any action by China to expel U.S. reporters,” said Martin Baron, executive editor of The Post. “The Chinese government’s decision is particularly regrettable because it comes in the midst of an unprecedented global crisis, when clear and reliable information about the international response to covid-19 is essential,” he added.

POCKET CHANGE

— SoftBank backs away from WeWork bailout: “A notice sent to WeWork shareholders … said that SoftBank believes regulatory probes into the startup’s business, including from the Securities and Exchange Commission and Justice Department, give it an out under the deal struck last fall to purchase $3 billion of WeWork shares from existing investors,” the WSJ's Liz Hoffman and Eliot Brown report.

“That would include Adam Neumann, former chief executive of WeWork parent We Co., who had the right to sell up to $970 million in stock as part of the October deal that led to his ouster from the company’s board. The development won’t affect the $5 billion lifeline SoftBank agreed to give WeWork directly—cash the startup badly needed then as it ran out of runway, and which it is likely to continue to need as the worsening coronavirus outbreak empties out its desks … The Japanese investment giant didn’t explicitly cancel the deal, and its notice to WeWork could be a negotiating tactic, or a way to delay the investment as markets remain volatile.”

— Theranos's patents live in suit against aspiring coronavirus test maker: “Fortress Investment Group's Labrador Diagnostics has sued the health startup BioFire, claiming that the company's FilmArray technology infringes on 2 patents that it holds. The plaintiff also filed an injunction demanding that BioFire stop using the technology. The lawsuit was first reported by TechDirt,” Business Insider's Aaron Holmes reports. Fortress bought Theranos's patents after the blood-testing start-up shut down amid its spectacular downfall.

“BioFire announced last week that it was launching 3 covid-19 tests using the technology in question, which would be halted if the court grants the plaintiff's injunction. Injunctions in patent cases are rare. But Fortress says it was not aware that BioFire was working on covid-19 tests when it filed the lawsuit, noting that BioFire announced the tests 2 days after the lawsuit was filed. Fortress also announced that it would 'offer to grant royalty-free licenses to third parties to use its patented diagnostics technology for use in tests directed to covid-19,' but indicated that it still claims ownership of the technology.”

OPINIONS

THE REGULATORS

CHART TOPPER

From Greg Daco of Oxford Economics:

Meanwhile, Republicans are much less likely than Democrats to express concern over the virus. Via The Post's Philip Bump:

DAYBOOK

Today:

The Labor Department releases consumer price data for February

General Mills, Five Below and Williams-Sonoma are among the notable companies to report their earnings

Thursday:

Darden Restaurants, Lennar and Cintas are among the notable companies to report their earnings

Friday:

The University of Michigan releases a preliminary report on consumer sentiment for March

THE FUNNIES