Fed Points To Waning Momentum In Virus-Blighted US Economy

Fed Points To Waning Momentum In Virus-Blighted US Economy

The Fed on Wednesday did as expected -- they kept policy on hold and cautioned that the outlook is extremely uncertain. There's not much else monetary policy can do at this juncture. The FOMC wants to keep what remaining options it has in reserve (no pun intended), and those options are now fairly limited. An extension of the maturity profile of monthly asset purchases is the "logical" next step should more accommodation be needed, but it's not entirely clear how WAM extension can help when it
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2 thoughts on “Fed Points To Waning Momentum In Virus-Blighted US Economy

  1. I mean in the face of feeble fiscal policy I can’t see Powell doing anything but keeping the foot on the pedal and looking for some octane booster no matter how high we see assets bubble up. Ultimately if it gets cash into the economy even extremely inefficiently it is the only thing keeping the lights on.

    Unless we see congress take the gloves off with McConnell I am not convinced we’ll have anything approaching what we need to address the level of economic issues we are accruing because we’re still dragging the GFC, Reaganomics, Covid, Trump, Student Loan Debt, Flat Wages, Consumer Debt, Climate Change and Natural Disasters. If we lose this 2 year window without substantial effort to address at least some of this I suspect the senate flips back red and we’re back to staring down the barrel of facism.

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