The daily business briefing: April 29, 2020

1. Trump orders meat processing plants to stay open

President Trump signed an executive order on Tuesday forcing meat processing plants to stay open to protect the food supply through the coronavirus crisis. Without the order under the Defense Production Act, one administration official said in a message to NBC News, "The vast majority of processing plants could have shut down, reducing processing capacity in the country by as much as 80 percent." Industry analysts say pork and beef processing has dropped by 25 percent due to outbreaks at plants that have forced major companies, including Tyson Foods and Smithfield, to close at least 20 facilities. Trump said hours before making the move that his order would "solve any liability problems" meat processors faced. He did not elaborate about those problems.

NBC News The Washington Post

2. Mnuchin: Small-business loans over $2 million will be audited

Treasury Secretary Steven Mnuchin said Tuesday that the Small Business Administration would audit all companies that received more than $2 million in loans intended for small businesses. "We want to make sure this money is getting to where it should be," Mnuchin told CNBC. The comments came a day after the Paycheck Protection Program started a second round of funding after Congress replenished its funds, which quickly ran out. The program attracted intense scrutiny when reports emerged of numerous large public companies that secured multimillion-dollar loans. The $660 billion program is designed to help businesses with fewer than 300 employees continue paying workers through coronavirus crisis shutdowns.

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The New York Times

3. Stocks rise ahead of Fed statement, GDP data

U.S. stock index futures rose early Wednesday ahead of the conclusion of the Federal Reserve's two-day policy meeting. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were up by around 1 percent several hours before the opening bell. Investors will be looking at the Fed's 2 p.m. statement for signs of how long the central bank will keep interest rates near zero as it tries to mitigate the economic damage of the coronavirus crisis. The market also could be moved by data on U.S. economic output due out at 8:30 a.m. Economists surveyed by Dow Jones expected the report to show that the economy shrank by 3.5 percent in the first quarter of 2020, after growing by 2.1 percent in the fourth quarter of 2019.

CNBC

4. Fed to lend $500 billion to large companies

The Federal Reserve plans to buy up to $500 billion in bonds issued by large American corporations to help them survive the economic damage from the coronavirus pandemic. The program, expected to begin within weeks, would not force the companies to preserve jobs or bar payments to executives and investors, but it will require them to pay back the money with interest. Critics said the program would let big companies direct money to shareholders and CEOs without protecting workers. "A few months down the road, after the government purchases its debt, the company can turn around and issue a bunch of dividends to shareholders or fire its workers," said Cornell University economist Eswar Prasad, "and there's no clear path to get it back."

The Washington Post

5. Trump adviser says 2nd round of stimulus checks possible

White House economic adviser Kevin Hassett said Tuesday that the Trump administration was considering pushing for a second round of stimulus checks to help Americans get through the coronavirus crisis. "I think that that's something we're studying very carefully that I know that people in the House are as well," Hassett said. "I expect that it's very likely there will be a Phase 4 deal, and we're going to be speaking with the president throughout the week about what he thinks should be in there." The first round of relief included $1,200 payments to individuals plus $500 per dependent child. Many Americans have already received the money through direct deposits, while others are still awaiting paper checks.

Forbes The Washington Post