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Will the fed's move fail to move asset prices higher but also cause inflation? If they're only making funds available for short-term loans, I'd figure neither

Will the fed's move fail to move asset prices higher but also cause inflation? If they're only making funds available for short-term loans, I'd figure neither equities or inflation will be significantly affected by the fed actions today. I would not be surprised if we see inflation though. The virus is going to lower productivity due to all the extra overhead. Prices in many areas will probably go up even as the economy stalls. Hopefully the governments react appropriately.

dev-ns8 7y ago
Based on your opinion, you think productivity will slow and inflation will rise (regardless of cause) that is the definition of stagflation and by definition bad for the economy, bad for equities. Given these two things, higher inflation lower productivity, we would expect to see the price of equities go lower. Also side note which is interesting, but not entirely sure how it effects things. This article hints that the Fed might be moving to a longer term asset purchase plan https://www.morningstar.com/news/dow-jones/2020031215079/fed-to-inject-15-trillion-in-bid-to-prevent-unusual-disruptions-in-marketsupdate https://www.morningstar.com/news/dow-jones/2020031215079/fed...