The Fed is providing way more help for the markets now than it did during the financial crisis

Markets, Coronavirus, Federal Reserve System, Economy

The Federal Reserve has indicated it will surpass its response to the financial crisis in terms of timing, intensity and, ultimately, monetary value.

Markets, Coronavirus

3/24/2020

The Federal Reserve has launched an array of programs aimed at helping the markets and economy through the coronavirus crisis. The programs are considerably more aggressive than what happened during the 2008-09 financial crisis.

The Federal Reserve has indicated it will surpass its response to the financial crisis in terms of timing, intensity and, ultimately, monetary value.

unload almost all of its remaining firepower seems destined to take it beyond the money-printing initiatives of the previous crisis, and its alphabet-soup array of programs is greater in scope than even all the programs it had launched during the crisis more than a decade ago. When everything is done, the Fed could have a balance sheet, consisting mainly of the bonds it has purchased to support markets and the economy, approaching $10 trillion, according to Krishna Guha, head of global policy and central bank strategy for Evercore ISI. "As things stand the Fed is racing very quickly towards a $7 trillion balance sheet and our best guesstimate is that it might peak in the very broad vicinity of $9 or $10 trillion," Guha said in a note to clients. "This is monetized credit policy and fiscal-monetary support on a grand scale." The central bank's efforts in that regard, taken within a month's time of when the coronavirus began chocking financial markets, easily beats the timeline during the financial crisis. The race to ease Indeed, the Fed starting in December 2008 increased its bond holdings by $3.7 trillion, pushing the total balance sheet past $4.5 trillion in operations that spanned six years. In a since-abandoned effort to run off some of those holdings, the total slipped below $3.8 trillion at one point. Since the Fed started purchasing assets again, the total has run past $4.7 trillion, the largest in the central bank's history. During the crisis — the worst economic meltdown since the Great Depression — the Fed did not start the so-called quantitative easing program until three months after Lehman Brothers collapsed in September 2008. While its launch of the Troubled Asset Relief Program came shortly after Lehman's fall, it took six months for other liquidity programs to come online. VIDEO 3:37 03:37 Tepper: Fed's liquidity is a good start but there is still a lot that need to be done Halftime Report The ambition of the Fed's current efforts will only grow with Monday's announcement that the Fed will purchase Treasurys and mortgage-backed securities "in the amounts needed" to support its goals of stabilizing markets. For some perspective on just how fast the Fed is moving, it intends to purchase $625 billion this week alone. That's more than the entire $600 billion second leg of quantitative easing that ran for eight months, from November 2010 to June 2011. Outside of the dollar force of QE, the Fed's amalgam of programs aimed at freeing up frozen credit markets also is more ambitious than anything it did during the Great Recession. Help still needed from Congress While programs including the Term Asset-Backed Loan Facility and help for the commercial paper and money markets are familiar to financial crisis historians, the Fed has added to its outreach. It now is buying corporate debt for the first time, added commercial mortgage-backed securities to its targeted purchases to help the credit markets, and it expanded the kinds of securities it is accepting as collateral for its liquidity offerings. Markets, though, are still distressed over the lack of corresponding fiscal stimulus from Congress, and stocks sold off aggressively Monday . But that doesn't mean the Fed hasn't done its part — only what it can, at least for now. "If Congress comes through – which is still our baseline – the combined policy actions should substantially mitigate the risk that the virus shock is amplified by an economy-wide credit shock," Guha said. "What it will not do is have any great bearing on how long the virus shuts down the economy." To underline the importance of getting fiscal and monetary forces working together, the Fed announced a vague proposal targeted to Main Street small business lending that will need help from whatever Congress passes. "The Fed package is impressive. It's also necessary, but probably not sufficient," said Lauren Goodwin, economist and multi-asset portfolio strategist at New York Life Investments. "The real challenge faced by the economy is the fact that businesses are closed. That's where the federal government needs to step in." The Fed, though, might not necessarily be done. Though it went full-throttle Monday, the central bank has consistently defied critics who say it is running out of ammunition by continuing to come up with new ideas. The final horizon would be buying stocks and even high-yield corporate bonds, through exchange-traded funds that back big indexes like the S&P 500 and Dow Jones Industrial Average. There's no sign that the Fed is headed in that direction, but it's one final blast it could sound if markets get into too much trouble. The Fed would need permission from Congress first. "There's a reason why the government has not wanted this perception of the central bank owning risk assets in the past," Goodwin said. "But if a liquidity crisis starts to turn into a solvency crisis and we still don't have that fiscal activity coming in to support the economy, then yes, I think you could continue to see the Fed be creative." VIDEO Read more: CNBC

The Dnc does nothing....well play games Why Boeing is soaring more than 16% and Zoom down more than 10% yesterday every one was saying this is strong buy this make no sense even with QE bs? The Stock Market Rigged Based on his finger positioning, the program size doesnt look too impressive.

Fed Unleashes Spending Power in New Bond-Buying Plan: Live UpdatesBreaking News: U.S. stocks fell even after the Fed unveiled its expansive new bond-buying program in an effort to help calm markets What can I say? An adequate reflection of our “great” leadership. MakeAmericaWellAgain TrumpMustGo

Boundless Fed bond-buying fuels stocks rebound, dollar recoilsGlobal equities rebounded on Tuesday, off near four-year lows, as investors pinned hopes on unprecedented stimulus steps by the U.S Federal Reserve and other policymakers to ease strains in financial markets

Oil jumps nearly 5% on Fed stimulus and optimism over fiscal packageOil futures saw strong gains Tuesday, with the U.S. benchmark extending a bounce off 18-year lows a day after the Federal Reserve unveiled a historic round of monetary stimulus and investors remained upbeat about prospects for congressional approval of a massive fiscal stimulus package. Except for trumps little KGB buddy, and Prince MurderingThug.

Boundless Fed QE fuels 2% equity bounce, calms dollarStocks in Asia and Europe rebounded on Tuesday as investors hoped for massive global stimulus measures after the Federal Reserve promised unlimited supplies of dollars to ease strains in financial markets You can trust China on that every time! Oh-My-God-OmniabsoluteGRAVITATIONAL-CONSTANT: Let's hope that the USA's🇺🇸 isn't so naive trying save all Nations and lose it's own ultimate & complete Sovereignty on Earth. Hence no Nation can help another Nation unless IT first can help ITSELF. (styles, smiles & profiles)!$!$

GOP Sen. Pat Toomey: New Fed action shows why the stalled coronavirus bill is 'so essential''The Fed is not allowed to lose money. That's why our legislation is so essential,' Sen. Patrick Toomey told CNBC on Monday. Another bailout for Large Corporations and billionaires and screw the working class. Republicans calling for gov action. That’s ironic!!! The Republican Party of old is officially dead... This interview cannot have reassured non-partisan investors. Toomey exuded desperation. Not clear if it was for his own portfolio or those of his big donors.

Fed takes emergency action to stave off a depressionThe Federal Reserve is signaling it will do whatever it takes to save the coronavirus-ravaged American economy from a depression. Are you interested in earning a consistent income by trading binary make a formidable profit within a certain period of trade (usually weekly depending on when you will be making withdrawal ) with the aid of the auxiliary trading system please let me know if you are interested yeah, for a hefty profit



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