(RightWing.org) – The Federal Reserve has closely monitored the US economic crisis resulting from the pandemic. Sending mixed messages, especially after the Phase 3 stimulus was passed, the Fed questioned whether another stimulus was needed in the short-term.
In a seemingly drastic reversal, Jerome Powell, Chair of the Federal Reserve, said that the economy was deteriorating “with alarming speed.” He also said, “All of us are affected, but the burdens are falling most heavily on those least able to carry them.”
Powell’s full address to the nation on Thursday was tweeted out.
— Federal Reserve (@federalreserve) April 9, 2020
So, now the Fed is taking an unprecedented step to help America recover: directly buying debt from large corporations and states.
This is more than what the central bank did back in the Great Recession in 2008. The Fed is attempting to keep as much credit flowing through the nation as possible, and it’s saving the most drastic measures for emergencies like the COVID-19 outbreak. Treasury Secretary Steven Mnuchin hopes to get the economy back online in the next one to two months, and this decision by the Fed could make that a reality.
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