Finance The Fed’s Cure Risks Being Worse Than the Disease28 March 20200Comments by David Ashton Q’s post re the Fed Reserve The Twitter link from Q’s post The original Praying Medic link – webpage now linked below instead https://youtu.be/cL2NnCq8KZI (Bloomberg Opinion) — The economic debate of the day centers on whether the cure of an economic shutdown is worse than the disease of the virus. Similarly, we need to ask if the cure of the Federal Reserve getting so deeply into corporate bonds, asset-backed securities, commercial paper, and exchange-traded funds is worse than the disease seizing financial markets. It may be. In just these past few weeks, the Fed has cut rates by 150 basis points to near zero and run through its entire 2008 crisis handbook. That wasn’t enough to calm markets, though — so the central bank also announced $1 trillion a day in repurchase agreements and unlimited quantitative easing, which includes a hard-to-understand $625 billion of bond buying a week going forward. At this rate, the Fed will own two-thirds of the Treasury market in a year. Follow me at: Federal Reserve Q Leave a Reply Cancel ReplyYou must be logged in to post a comment.