The Federal Reserve slashed interest rates to zero percent and unleashed a massive $700 billion quantitative easing program on Sunday evening. This is in addition to the $1.5 trillion in repo market funding the central bank announced on Wednesday. Here is what the official QE4 (or QE5) will look like: $500 billion in Treasurys and […]
Federal Reserve
Will COVID-19 trigger the next bust? No, but it will make the economic collapse worse
By: Frank Shostak Global policymakers moved to ease public anxiety over the coming economic hit from the coronavirus as analysts warned of a severe slowdown in growth and a possible recession if the virus continues to spread. The US Federal Reserve cut interest rates on Tuesday, March 3, in an emergency move designed to shield […]
THANKS FED: U.S. central bank is making everything worse amid Covid-19 crisis
By: Daniel Lacalle The Federal Reserve’s monumental mistake of cutting rates this past week can only be understood in the context of the rising God complex among central planners: an overwhelming combination of ignorance and arrogance. Less than a week ago, several members of the Federal Reserve board reiterated—rightly so—that cutting rates would not have a […]
Random Friday: Coronavirus, MSNBC math fail, Elizabeth Warren
News of the Day: The Federal Reserve is taking a page out of the People’s Bank of China (PBoC) and quarantining cash over coronavirus fears. The U.S. central bank announced that it is putting aside some cash it has recently received from Asia for seven to ten days as a precautionary measure. The PBoC recently […]
Is the Federal Reserve ready to fight a recession?
By: Pavel Mordasov On February 11, 2020, Federal Reserve chairman Jerome Powell delivered a semiannual report discussing the economy and laying out the good, the bad, and the precautions that the Fed must take in the event of a future economic downturn. Although Powell spoke on a lot of positive features that are occurring in the […]