Like a slasher film... But with interest rates. The Fed's yanked out all the stops in its financial medicine arsenal. On March 3, the nation's central bank doled out the first emergency rate cut since the '08 financial crisis. On Sunday, it cut interest rates to near 0% and announced it's dropping $700B on long-term bonds. Here's what the Fed wants:
But the Fed is fighting a different beast... The COVID-19 pandemic. It's trying to prevent the virus from causing a financial crisis — but investors are looking for medical solutions, not monetary ones.
There's only so much the Fed can do... And it's already done it. With all these drastic measures, the Fed has run out of rockets in its economic bazooka. Now it's up to Congress and the White House to help with changes in taxes and spending to help the consumers and small businesses seriously squeezed by the econ shutdown. This might include government bailouts for struggling industries (reportedly, airlines could be first).