NEW YORK – Starting on Monday, August 17, the Federal Reserve Bank of New York's Liberty Street Economics blog will release a three-part series exploring inequality in the credit markets as it pertains to COVID-19 incidence and CARES Act debt relief. The series will run on August 17, 18 and 19.
The latest collection of blog posts builds on the Liberty Street Economics research series on heterogeneity. Previous installments, published in October 2019, March 2020, and July 2020 examined inequality in employment, earnings growth, student debt, college cost subsidies, health and housing, and accessing credit markets, including heterogeneity based on race, age, geography and income, and its implications for economic well-being.
The latest series will feature the following posts:
"Are Financially Distressed Areas More Affected by COVID-19" which will look at differences in COVID-19 incidence by areas of financial vulnerability. Are areas that are more financially distressed affected by COVID-19 to a greater extent than other areas?
"Debt Relief and the CARES Act: Which Borrowers Benefit the Most?" who could benefit most (and by how much) from the various debt relief provisions of the CARES Act, the $2.2 trillion relief package to combat the economic impact of COVID-19.
"Debt Relief and the CARES Act: Which Borrowers Face the Most Financial Strain?" examines the 63 percent of borrowers who do not have a mortgage or student loan. These borrowers will not directly benefit from the loan forbearance provisions of the CARES Act, although they may be able to receive some types of leniency that many lenders have voluntarily provided.
This series comes on the heels of other related research the New York Fed put out recently, including the August 13 blog, "The Disproportionate Effects of COVID-19 on Households with Children" and the August 4 brief, "Double Jeopardy: COVID-19 and Black Owned Businesses."