Fed Says Virus Causing ‘Tremendous’ Human, Economic Suffering. Punts On IOER

Fed Says Virus Causing ‘Tremendous’ Human, Economic Suffering. Punts On IOER

The Fed kept its main rate on hold as expected Wednesday, mostly because going any lower would mean venturing into negative territory, a journey US policymakers are reluctant to take alongside their counterparts in Europe and Japan. The April meeting was widely expected to be a kind of "status report". Having spent the last several weeks putting out fires, buying trillions in assets and backstopping everything that “counts”, this is a time for Jerome Powell and friends to communicate to the
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4 thoughts on “Fed Says Virus Causing ‘Tremendous’ Human, Economic Suffering. Punts On IOER

  1. 2 yr Treasury yield at 0.24 per cent, that’s where the 10 yr is headed for a yr from now. Any thoughts of exploding GDP are ludicrous!

    1. We may be looking at negative GDP prints for the next three quarters at a minimum. Social distancing in some way, shape or form is here to stay for a while. Industrial production will be tepid, restaurants and Malls will only be half full at best, and corporate travel will continue to be limited…who wants to be the guy that accidentally picks up the virus, deposits it on a client who then takes it home to their family and someone dies as a result. No vaccine (and it is unlikely there will be one), no economic growth for quite some time.

      1. What WHO has said about those with antibodies not being safe and some data that show people have gotten it twice militates against a successful vaccine. None for the cold and flu vaccine is only good for six months or less. Many other viruses with no vaccines as well.

  2. When people see the idea that GDP may rebound by 6 percent next year, they lose context that any small per cent gains will be starting from sub zero collapse, and thus good times will only, apparently exist in highly overvalued subsidized casinos. Add to that the reality that a real vaccine is maybe 2 years away and all that’s left is a global struggle for most people. If the past is a guide, gains in the stock market seldom spill out into mainstreet!

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