Speak loudly and carry a big stick

May 05, 2020 | Jay Zhang


The Fed has fashioned its monetary policy response to the COVID-19 pandemic after foreign policy of old, with massive pledges of quantitative easing and liquidity facilities.


While this week’s Fed meeting lacked any of the Fed fireworks we have seen over the past two months, Fed Chair Jerome Powell again spoke forcibly, stating, “we are committed to using our full range of tools to support the economy in this challenging time, we are going to use them forcefully, proactively and aggressively until we are confident that we are solidly on the road to
And those tools, or the Fed’s big stick in this case, have been the wide swath of lending facilities announced that have cajoled markets back into a more-normal state of operation—even as most of them aren’t even up and running, while others stand barely used.


Market pulse
3 Cyclical sectors lead U.S. equity rebound
3 The cost of Canada’s pandemic response
4 UK banks hit by impairment charges
4 China’s manufacturing undercut by low demand abroad



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