Basis Points – March 31, 2020

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Above the Fold

Federal COVID-19 Guidelines Extended — What Does It Mean?

On March 16, the Trump administration issued “15 Days to Slow the Spread,” a federal public health campaign (originally set to end March 31) that sets general guidelines for Americans in order to slow the pandemic. Rules like following good hygiene practices, limiting social gatherings to 10 and avoiding food courts and bars were part of the list of instructions.

While these general rules set a framework for society and commerce, the decision to close related (non-federal) businesses and whatever other type of entities deemed “non-essential” truly comes down to the individual states, counties or cities. Those closures and even “shelter-in-place” laws are typically affected and enforced using governor-issued executive orders or temporary ordinances at the local level.

So while the President could choose to fully open federal facilities, it will be up to all the individual states, counties, cities and towns to remove their restrictions and allow citizens to get back to work and resume “normal” life. The latest extension, now out to April 30, simply means that the federal government still recommends guidelines, but local officials can either relax or stiffen regulations for citizens. Given the current virus infection curve, it seems more likely that restrictions are going to increase before they’re scaled back. 

 

Three Things 

  1. COVID-19 Cell Phone Tracking Begins Stateside – While not nearly as invasive as China’s detailed tracking of its citizens, the Centers for Disease Control and Prevention (CDC) is already using millions of consumers’ cell phones to examine potential virus spread patterns. According to the Wall Street Journal, state and local governments also have access to stripped down phone data that reportedly just shows location, to help them model potential hotspots and target areas where Americans are potentially ignoring shelter-in-place orders.  
  2. Stimulus Check Gotcha – The upcoming stimulus checks are set for distribution in the coming weeks. The amount of your check will depend on your 2019 income and number of children. If you haven’t filed your 2019 taxes, check amounts, including the number of children in the household, will be based on your 2018 returns. But if you made more money in 2019 and should have received a smaller amount or no check at all, the IRS will make you pay back that “extra” money on your 2020 return. If you had a child after you filed your return or made less in 2019, you’ll obviously be owed a credit.   
  3. Macy’s Lets Everyone Go (For Now) – With all of Macy’s physical stores closed since March 18, the company decided to furlough nearly all its workforce of roughly 130,000 people. The company will continue to pay 100% of health care premiums through at least May and retain minimal staff to facilitate ecommerce orders and handle calls to customer service. 

Did You Know?

COVID-19 Positives

  • The FDA officially gave the emergency use approval for antimalarial drugs chloroquine and hydroxychloroquine to treat patients hospitalized with COVID-19 after increasing, but limited evidence, shows promise in treatment of the disease.  
  • While we are still seeing an exponential rise in testing and new cases here in the U.S., a Nobel laureate from Stanford University predicts America’s collective recovery from COVID-19 will be faster than most estimations. Let’s hope he’s correct.
  • In New York City, currently the epicenter of the outbreak, thousands of citizens were heard cheering for health care workers at 7 p.m., a typical shift change time for hospitals. Similar support for those on the front lines is happening around the world, especially in big cities throughout Italy and Spain.
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