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Q & A on CARES Act

Prepared by Well Fargo Investment Institute.

How a New Federal Law Aids the Economy

Key takeaways

  • On March 27, 2020, Congress passed and the president signed into law
    the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which
    provides economic support intended to be quickly available to workers
    and businesses.
  • The law is innovative in targeting aid as quickly as possible to individuals
    and businesses, and for how it works with the Federal Reserve to
    support the U.S. financial system.

What it may mean for investors

  • Whether the CARES Act is sufficient to end the selloff still depends
    upon the pace of infections. We continue to believe that some equity
    market consolidation is likely, including the possibility that the S&P 500
    Index may retest its recent lows.

 

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