Saturday, March 14, 2020

Is the Fed saying the next recession breaks them?

“A promise to leave rates at zero until the central bank’s job and inflation goals are met, coupled with perhaps a trillion dollars a year in bond purchases, may be the Fed’s best hope of beating the next recession, and even then may fall short, former Fed research director David Wilcox and former top adviser William Reifschneider said in a paper released on Wednesday.” - Reuters

So, this implies that the Federal Reserve is counting on people to buy trillions of dollars of U.S. bonds that offer zero interest ... in order to bail the economy out of the next recession.


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