The Fed has been far more communicative that this C-19 coronavirus chaos will not be the end of the economy as we know it.
Chairman Powell’s “whatever it takes” pledge to avoid a depression and to get the economy back to growth again has added fuel to the economy, after having been chided by President Trump for being too slow and too Hawkish long before the recession came into light. Add up 2 emergency rate cuts to Zero on short-term rates and a pledge to buy trillions worth of assets, and the recovery game kicked off.
The 29 April FOMC mins even outlined potential predetermined paths to assist the economy further.
Other regional Fed Presidents also have been vocal and supportive of the economy.
St. Louis Federal Reserve head James Bullard spoke on 20 May and indicated that the fears of a 2nd wave of the C-19 coronavirus disease may not be as big a risk as feared. He also said that the economic crisis already has reached its peak, with a good chance that there will be a solid economic recovery in 2-H of Y 2020.
Minneapolis Fed-head Neel Kashkari was more cautious in May, but he also said that the US economy likely would be back to growth in Q-3 of Y 2020, even if it will be a long time before we return to the prior marks.
John Williams, head of the New York Federal Reserve, also pledged that the Fed has an unwavering commitment to limit the economic damage caused by the pandemic and to foster conditions for a strong and sustained economic recovery.
Have a healthy Memorial Day weekend, Keep the Faith!
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