- Fed's Chairman Powell: Fed still has policy room for more action
Market news
26 March 2020
Fed's Chairman Powell: Fed still has policy room for more action
- Only limit for Fed is amount of backstop it gets from Treasury
- Effectively, every $1 of Treasury backstop can support $10 worth in Fed loans
- Fed ready to step in wherever credit is not flowing and will continue to do it aggressively
- Current crisis is not a typical downturn
- When the virus is under control, confidence will return
- Trying to assure rebound is vigorous when it comes
- Says we could see a good rebound on other side
- We may well be in a recession
- The priority should be to get virus under control
- If we get virus under control, the economy can resume
- There is nothing fundamentally wrong with our economy
- Economic activity expected to resume in second half of the year
- I don't see risks around Fed's recent actions
- We're not going to run out of ammunition when it comes to upcoming lending
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