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Recently, there has been some support for suspending rent and mortgage payments, the goal being to provide financial relief during the Covid-19 response.

I'm wondering what the impacts for the economy would be if this was put in place. Here is what I could think of...

  • Obviously, this would provide relief for those feeling the economic effects
  • It could impact the bank's reserve rate, because they aren't getting payments
  • The Fed owns a considerable amount of mortgage backed securities, a market that I assume would be impacted.

Are these valid concerns, or are there larger ones I'm missing? I'm not advocating for or against the policy, just trying to think through it's impact.

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    $\begingroup$ "next round's on the house" $\endgroup$
    – Fizz
    May 14, 2020 at 4:46
  • $\begingroup$ Without details of the proposal, there’s no way to answer this. Although interesting to talk about, unlikely to be able to get an answer here, as the purpose of this website is to give solid answers, not opinions. $\endgroup$
    – Brian Romanchuk
    May 14, 2020 at 17:12

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