The Fed’s Further Action to Combat the Virus Fallout

PGIM Fixed Income

by Nathan Sheets, Phd, Chief Economist and Head of Global Macroeconomic Research

March 2020

The Fed continues to follow its playbook from the global financial crisis—announcing on Sunday a broad-based package of monetary-easing measures.

By any historical standard, the scale and scope of these actions was extraordinary. Even so, markets were expecting extraordinary action and have fallen since the Fed’s announcement. Notwithstanding today’s drop in asset prices, we believe the Fed’s moves are significant and will, over time, provide important support to the economy and markets.