- The Federal Reserve just aimed its ‘bazooka’ at the financial markets and it failed.
- Chairman Powell revealed a historic ‘QE infinity’ program , pledging to buy assets indefinitely.
- After a quick pump, the stock market quickly erased the gains and opened lower.
This is it. This is the biggest weapon in the Federal Reserve’s arsenal: QE-forever . A commitment to buy assets at whatever price, with no end in sight .
It was supposed to be their ‘bazooka moment,’ to stabilize the markets. But the impact on the stock market vanished in a matter of minutes.
(Federal Reserve out of ammo. It’s Trump’s move now
Jerome Powell and the Federal Reserve have officially shot every round in the gun. Their job is to provide liquidity and stop the engine from seizing up entirely. They’ve done their job.
But they can’t pump life back into the economy as America goes into lockdown. That has to come from direct fiscal stimulus. The Trump White House and Congress must work together to pass a bill that puts money directly into the hands of people and small businesses. The only hope of stopping the stock market bleeding lies with Congress and the multi-trillion fiscal package.
Last modified: March , 102324 3: (PM UTC
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