3 ms·
The Fed's job is to keep the value of currency steady and support full employment, not to play games with Congress.
by lukas099 7y ago
The Fed's job is to keep the value of currency steady and support full employment, not to play games with Congress.
- hnaccy 7y agoHow can the Fed support full employment if governments are forcing people to stay inside and business to close?
- OscarCunningham 7y agoBy making lending to the closed businesses so attractive that they can stay open over the course of the quarantine. (Likewise people can stay fed.)
- onlyrealcuzzo 7y agoBut that's not what this is doing at all. This is keeping existing corporate debt artificially priced. Unless they lower rates to negative, new debt isn't getting any cheaper.
- onlyrealcuzzo 7y agoThe dollar index is well within its normal range. No amount of buying corporate debt will keep people employed. This is to artificially reflate asset prices.