• Federal Reserve Chair Jerome Powell said that despite the promising vaccination rollout in the United States and other wealthy countries, the world will be at risk for new mutations of the coronavirus “until the world, really, is vaccinated,” noting that emerging market economies are far behind and that will hinder confidence and economic growth. Powell also stressed the uneven nature of the pandemic recovery, pointing to lower-income service workers who have taken the hardest hits on job losses. (The New York Times) 

• John Coates, an acting director at the Securities and Exchange Commission, warned companies going public using a special-purpose acquisition company not to make misleading claims about their growth, signaling that the agency could give SPAC deals the same scrutiny as it would an initial public offering. SPACs are thought to have reduced liability exposure compared to IPOs, which Coates warned could be “overstated at best, and potentially misleading at worst.” (The Wall Street Journal)

• In a letter to several large banks, including Credit Suisse Group AG and Nomura Holdings Inc., Senate Banking Committee Chairman Sherrod Brown (D-Ohio) asked for more information on their relationship with Archegos Capital Management following the fund’s blowup last month. In the letter, Brown asked for more information on how the banks became involved with Archegos and how they do business generally with “family offices.” (Reuters)

New York Fed Official: Fed May Expand Access to Reverse Repo Facility
Michael S. Derby, The Wall Street Journal

The New York Fed is looking at expanding access to a facility used to influence short-term interest rates and implement monetary policy in a way that could bring smaller firms into the marketplace, an official at the bank said. Lorie Logan, who manages the Federal Reserve Bank of New York’s $7.7 trillion System Open Market Account holdings of securities and cash, on Thursday said the central bank is exploring doing business with a broader range of firms as it works to pursue the monetary policy goals laid out by Fed officials.

Cultural Venues’ Quest for Billions in Federal Aid Is Halted by Glitch
Ben Sisario and Stacy Cowley, The New York Times

As the government prepared on Thursday to start taking applications for a $16 billion relief fund for music clubs, theaters and other live event businesses, thousands of desperate applicants waited eagerly to submit their paperwork right at noon, when the system was scheduled to open. And then they waited.

In 2020, There Was an Epic Collapse of Demand. Now, the Problem Is Supply.
Neil Irwin, The New York Times

Container ships stretch far out into the Pacific, waiting days for their turn to unload goods at California ports. Automakers pause production because they can’t get enough of the computer chips that make a modern car work

Biden Should Stick to Traditional Infrastructure, CEO Group Says
Ilya Banares and David Westin, Bloomberg

The head of a prominent business lobbying group is calling on President Joe Biden to stick to “traditional infrastructure” in his $2.25 trillion plan and drop a proposed corporate tax increase. Josh Bolten, chief executive officer of Business Roundtable, which represents chief executive officers of large U.S. companies, said in an interview with Bloomberg TV Thursday that the organization wants the White House to limit its proposed package to projects that “expand the economy’s productive capacity” and “leave the rest of the stuff for something else.”

With Warning to Democrats, Manchin Points the Way for Biden’s Agenda
Jim Tankersley and Carl Hulse, The New York Times

Senator Joe Manchin III of West Virginia flashed a warning sign for President Biden’s infrastructure ambitions this week, renewing his pleas for fellow Democrats not to ram through a large spending bill without first working to compromise with Republicans who have panned the president’s plans. In a divided Washington, the chances that such a compromise will materialize are slim — at least for a sprawling spending plan of up to $4 trillion, as Mr. Manchin, a pivotal swing vote in the Senate, and administration officials favor.

Workers Slowly Pull Away From Jobless Benefits as Economy Picks Up
Gwynn Guilford, The Wall Street Journal

Workers are slowly pulling away from unemployment assistance as a U.S. economic revival picks up speed, with initial filings for benefits holding near pandemic lows and the number of people receiving help dropping. Initial jobless claims, a proxy for layoffs, increased by a seasonally adjusted 16,000 last week to 744,000, the Labor Department said Thursday.

Infrastructure Is in the Eye of the Democratic or Republican Beholder
Ken Thomas and Lindsay Wise, The Wall Street Journal

President Biden and Republicans are competing to update the nation’s infrastructure—or, rather, the definition of what constitutes infrastructure in the 21st century. Who prevails could gain a political edge in the debate over the Biden administration’s $2.3-trillion plan to address a post-pandemic world and give American workers and companies the tools they need to compete with China.

Biden Proposes $715 Billion for Pentagon in First Budget Outline
Roxana Tiron and Anthony Capaccio, Bloomberg

President Joe Biden plans to request $715 billion for his first Pentagon budget, a decrease from Trump-era spending trends, according to three people familiar with the plans. The White House plans to release an outline Friday of Biden’s spending priorities, including defense. 

Beyond Pandemic’s Upheaval, a Racial Wealth Gap Endures
Patricia Cohen, The New York Times

Not since Lyndon Baines Johnson’s momentous civil rights and anti-poverty legislation has an American president so pointedly put racial and economic equity at the center of his agenda. President Biden’s multitrillion-dollar initiatives to rebuild infrastructure in neglected and segregated neighborhoods, increase wages for health care workers, expand the safety net and make pre-K and college more accessible are all shot through with attention to the particular economic disadvantages that face racial minorities

Labor Wants Biden to Put Cook or Spriggs on Fed, Trumka Says
Saleha Mohsin and Jennifer Jacobs, Bloomberg

AFL-CIO president Richard Trumka called on President Joe Biden to use a current vacancy on the Federal Reserve’s Board of Governors to bring greater diversity to the central bank. Trumka said in an interview Thursday that union officials have recommended the White House nominate William Spriggs or Lisa Cook for the Fed board seat. 

U.S. Futures Fluctuate as Treasury Yields Rise: Markets Wrap
Emily Barrett and Robert Brand, Bloomberg

.S. equity-index futures struggled for direction on Friday as investors weighed prospects for economic growth against lingering inflation concerns. Treasury yields rose and the dollar gained. S&P 500 futures fluctuated, while contracts on the Nasdaq 100 edged lower as factory-price data from China spurred new concerns over global inflation despite Federal Reserve Chair Jerome Powell’s promise of a U.S. recovery without surging prices.

Carney Aims for Global Banking Climate Pledge at Biden Summit
Jess Shankleman and Alastair Marsh, Bloomberg

Dozens of European and U.S. banks are considering throwing their weight behind the White House’s Earth Day summit under plans being drawn up by former Bank of England governor Mark Carney. Carney is expected to unveil the Glasgow Finance Alliance for Net Zero during the climate change summit on April 22 and 23, in his role as adviser to U.K. Prime Minister Boris Johnson.

Citigroup Fights for Freeze on $500 Million It Sent in Blunder
Chris Dolmetsch et al., Bloomberg

Revlon Inc. lenders that received more than half a billion dollars in accidental payments from Citigroup Inc. are asking a judge to free up the money he’s already ruled is theirs to keep. The bank sued 10 asset managers for the Revlon lenders last summer to force them to return $504 million it had mistakenly wired them, an epic back office blunder that led to a closely watched trial. 

Leon Black’s surprise Apollo Global exit came amid sexual harassment allegation
Josh Kosman, New York Post

Leon Black’s surprise exit from the helm of Apollo Global Management last month came just days after several directors on the private-equity giant’s board learned of accusations of sexual harassment against him by a woman he claimed was trying to shake him down over a “consensual affair,” The Post has learned. Black was already on track to step down as Apollo CEO by the end of July when he unexpectedly announced on March 22 that he would be leaving as CEO and Chairman, effective immediately.

Biden Plans to Order Climate Risk Strategy for Financial Assets
Jenny Leonard, Bloomberg

President Joe Biden plans to direct his administration to develop a strategy on climate-related risks for public and private financial assets, according to a draft document seen by Bloomberg News. The government-wide strategy is set to be developed within 120 days under an executive order that’s nearing completion, according to a person familiar with the matter. 

Investment Giants Lobby to Avoid Antitrust Scrutiny
Dawn Lim, The Wall Street Journal

Asset managers are fighting a proposal from U.S. antitrust authorities to tighten scrutiny over how these firms influence the way businesses operate and, in turn, the prices of everything from airline tickets to food. In March, the asset-management industry pushed back on the proposed rule on a videocall with congressional staffers. Executives of Capital Group Cos., Fidelity Investments, Nuveen LLC and Wellington Management Co. joined alongside others, people familiar with the matter said. 

Visa’s Incentives to Banks Examined by Justice Department
Jennifer Surane and David McLaughlin, Bloomberg

The U.S. antitrust investigation of Visa Inc. is scrutinizing deals the company has with banks to entice them to process more online debit-card transactions over its network — spending that surged amid coronavirus lockdowns. The Justice Department is probing incentives Visa offers banks that route more debit-card spending through its network, according to people familiar with the matter. 

As Investors Switch to E.T.F.s, So Do Managers
Conrad de Aenlle, The New York Times

One of the most persistent investment trends is the migration of money out of stock mutual funds and into exchange-traded funds, which are easier to trade, have lower operating expenses and often have favorable tax treatment. Over the last 10 years, a net $900 billion has flowed out of stock mutual funds and $1.8 trillion has flowed into stock E.T.F.s, according to Morningstar.

Chief of SEC Whistleblower Office, Jane Norberg, Leaving Agency This Month
Mengqi Sun, The Wall Street Journal

The Securities and Exchange Commission’s whistleblower office is changing leadership amid a record-setting year for the regulator’s cash-for-tips program. Jane Norberg, chief of the SEC’s whistleblower office who helped lead the unit from its infancy, will leave the agency this month after nine years with the unit, the SEC said Thursday. 

The $50 billion race to save America’s renters from eviction
Jonathan O’Connell, TheWashington Post

The Biden administration again extended a federal moratorium on evictions last week, but conflicting court rulings on whether the ban is legal, plus the difficulty of rolling out nearly $50 billion in federal aid, mean the country’s reckoning with its eviction crisis may come sooner than expected. The year-old federal moratorium — which has now been extended through June 30 — has probably kept hundreds of thousands or millions of people from being evicted from their apartments and homes.

How Biden stimulus bill will target homelessness
Tracy Jan, The Washington Post

Housing Secretary Marcia L. Fudge on Thursday unveiled nearly $5 billion in new grants to states and local governments across the country for rental assistance, the development of affordable housing and other services to help people experiencing or on the verge of homelessness. The infusion of money to reduce homelessness, part of the $1.9 trillion coronavirus relief package that President Biden signed last month, is the latest example of how the administration is using the American Rescue Plan to enact a sweeping anti-poverty agenda amid the pandemic.

New York City’s Wealthy Will Pay Nation’s Highest Tax Rates. How Will That Affect a Rebound?
Emily Glazer and Heather Gillers, The Wall Street Journal

New York this week agreed to increase taxes on its most affluent residents and raise corporate franchise taxes, aiming to boost public finances without further hobbling an economy hit by the pandemic and lockdowns that have spurred remote work. Business leaders say the increases—which would result in top earners in New York City being charged the highest combined tax rate in the U.S.—could backfire by driving away the very people and companies the city relies on for its revenue.

Global Corporate Taxes Face ‘Revolution’ After U.S. Turnaround
William Horobin et al., Bloomberg

A surprise U.S. drive to overhaul international corporate taxation promises a new era for governments to capture a bigger tax take from some of the most successful global businesses — if only the rest of the world can agree. Welcoming noises in Europe to Treasury Secretary Janet Yellen’s proposals suggest a good start in shifting what’s been a years-long impasse among more than 135 countries over harmonizing corporate taxes.

GameStop and Bitcoin Renewed a Push to Digitize The Stock Market
Paul Vigna, The Wall Street Journal

Imagine a world where you could buy stocks, bonds, derivatives, cryptocurrencies or even pieces of art, all on one exchange, 24 hours a day, seven days a week, from anywhere in the world. On this exchange, trades occur directly between two investors instead of through a complex latticework of brokers, clearinghouses and other middlemen and gatekeepers.

PayPal is building a ‘super app.’ Should banks be worried?
Kevin Wack, American Banker

For years, bankers agonized over the day when Big Tech firms would finally set their sights squarely on financial services. Mainly they worried about four companies: Amazon, Apple, Facebook and Google. Meanwhile, a fifth tech powerhouse, somewhat smaller but growing fast, was adding products traditionally offered by retail banks. 

The Biden Plan for Economic Sclerosis
Kevin Hassett, The Wall Street Journal

President Biden has proposed a back-to-the-future tax plan. When President Trump took office, the U.S. had the highest corporate tax rate in the developed world and had experienced a decade of slow growth, low investment and stagnant employment and real wages.

Family Support in Hard Times: Dynamics of Intergenerational Exchange after Adverse Events
Jessamyn Schaller and Chase S. Eck, The National Bureau of Economic Research

We use an event-study approach to examine changes in intergenerational financial transfers and informal care within families following wealth loss, job exit, widowhood, and health shocks. We find sharp reductions in parental giving to adult children following negative shocks to parents’ wealth and earned income, particularly in low-wealth households.