Global Markets Recap
History is happening before our eyes. In no uncertain terms, Fed chair Jay Powell declared the world’s largest central bank at the end of the road – no negative rates “for now”
And the torch is officially being passed after decades from monetary policy to fiscal policy amid a “highly uncertain” outlook.
Mr. Powell: “Additional fiscal support could be costly, but worth it if it helps avoid long-term economic damage & leaves us with a stronger recovery. This trade-off is one for our elected representatives, who wield powers of taxation & spending.”
As the memory & merits of predecessors Volcker, Greenspan, Yellen & Bernanke et al fade in the rearview mirror.
“……for our elected representatives……”
A House divided is a challenging place to do business & that’s where we stand. Maybe the “world’s greatest deliberative body” – the Senate – will summon the courage to make things happen. But I dunno: there seems more talk these days about deep-state inquiries than fixing the giant gaping whole coronavirus has left us. Bankers talk in hushed tones & you have to listen very carefully & play it back.
“Fiscal support could be costly….this trade-off is one for our elected officials.”
Never before have I heard the Fed punt to Congress before. On to need Plan B; any questions.