4 ms·
How much more effective would it be to put this purchasing power toward simply combating the virus? Probably a lot...
by munk-a 7y ago
How much more effective would it be to put this purchasing power toward simply combating the virus? Probably a lot...
- eranima 7y agoThe Fed doesn't have that power though, nor should they. That's up to congress to decide
- mushufasa 7y agoExactly. The fed controls monetary policy and acts independently. The US Executive + Legislative branch control fiscal policy, which would be where they could spend on virus programs. The fed is independent precisely so it can act fast in times like these. It's a limited scope but it's something, whereas the extremely partisan congress + Trump likely won't move as fast if at all.
- adaisadais 7y agoI wish the Fed would give the $ back to the American people and let them decide what to do with it. The growth would be slower but it would be more genuine. This would help those most affected and would help to weed out bad actors. But I am not the Chairman...
- selectodude 7y agoThe Fed isn’t responsible for cutting checks. Congress can direct the Fed to sell bonds and then distribute the money but the dollars were never the American people’s to begin with.
- oxymoran 7y agoYou have to read between the lines here. They did this because there was not enough liquidity to cover the institutional sell off in the bond market. In other words, had they not done this, there very well could have been a run on the banks. That would be very very bad. You can’t fight the virus if hospitals can’t pay doctors.
- missedthecue 7y agoIt's like 99% of the population have no idea why the reserve banking system exists.