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The mandate of the fed is to have maximum employment and price stability. With the impact of social distancing to businesses there was no other alternative to p
by dharma1 6y ago
The mandate of the fed is to have maximum employment and price stability. With the impact of social distancing to businesses there was no other alternative to protect employment rather than fed buying securities so the govt has funds for fiscal stimulus to prop up employers that might otherwise go bust (and may still).
The stimulus is intended to protect jobs and livelihoods, not to react to movements in the stock market (even if the current president seems to think so)
- chiefalchemist 6y agoAgreed. The entire exercise has been about mitigating chaos. A freefalling stock market _and_ overwhelmed hospitals would cascade badly. Any lives saved was a byproduct. For better or worse, agreed or not, the US' gov diverted - for now? - an implosion. The Fed can't eliminate risk. It also can't guarantee future returns.