The Fed’s Further Action to Combat the Virus Fallout
The Fed continues to follow its playbook from the global financial crisis—announcing the first round of broad-based 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.