Fed Brings Out Bazooka. Announces Massive Repos, Expands Asset Purchases Beyond Bills

Fed Brings Out Bazooka. Announces Massive Repos, Expands Asset Purchases Beyond Bills

The Fed has seen enough. With US equities in free fall, and European stocks having suffered their largest one-day loss in history, the New York Fed announced on Thursday it's expanding asset purchases beyond T-Bills and will step in to provide a veritable tsunami of liquidity. "As a part of its $60 billion reserve management purchases for the monthly period beginning March 13, 2020 and continuing through April 13, 2020, the Desk will conduct purchases across a range of maturities to roughly ma
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2 thoughts on “Fed Brings Out Bazooka. Announces Massive Repos, Expands Asset Purchases Beyond Bills

  1. Market participants spent much of 2019 begging for weak economic numbers to ensure continued Fed rate cuts. The read-through was that “insurance cuts” are fantastic ways to juice the numbers. Free money.

    Careful what you wish for.

    Looks like it took around an hour for the market to realize that “emergency cuts” aren’t quite as fun.

  2. Sounds to me like a reason to sell… I mean yeah a hit of liquidity couldn’t hurt but it doesn’t actually make anything materially more likely that the year will be one of growth. Sleep a little easier that the whole thing hasn’t come apart maybe.

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