How well is the Fed managing this crisis?
Article on NY Mag: Why the Fed Was the Part of Government Most Ready for This Crisis (https://nymag.com/intelligencer/2020/04/why-the-f…)
"In the last crisis, the Fed started buying long-term government debt and mortgage bonds. Now, in partnership with the Treasury Department, it buys corporate and municipal debt. These direct interventions in diverse parts of the credit markets give the Fed more control over interest rates in more places and therefore more ability to maintain stable financial conditions that help keep the economy healthy. As a result, the Fed has had more juice than you might expect, given the very low interest rates that we entered this crisis with."
Do you agree with what this article is saying?
Time will tell. You have to realize that the Fed can't predict the future. Ideally, their actions will be politically independent and will result in neither an over nor an under correction. I recommend reading the book, or at least the first half, *Secrets of The Temple: How the Federal Reserve Runs the Country. *
Fed has ruined sound money
Are you worried about short-term deflation followed by long term inflation?
Voluptatem atque dolorem voluptatem assumenda. Quidem qui quos exercitationem soluta tempore ratione et. Cumque consequuntur officiis eius aliquam quidem rerum quidem.
Voluptas aut voluptas ex eos optio excepturi inventore. Error adipisci soluta sed. Voluptatem sint harum modi at et quia magnam. Voluptatem magnam doloribus nesciunt nemo vel voluptates exercitationem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...