There's not a lot the Fed can do about a coronavirus recession

[marmar]

(MarketWatch) The coronavirus is like a terrible hurricane heading for the coastline — it’s gaining momentum but the public health and economic consequences are still quite tough to predict.

What is easier to say is that anything the Fed can do to assist the economy will be palliative—calls for the Fed and other central banks to act quickly are misplaced at best and more likely downright dangerous.

The most important thing to recognize is that fiscal and monetary policy—a quick tax cut or jolt of infrastructure spending and Fed interest rate cuts and bond purchases—will be akin to passing out candles. They won’t bring back electric power any quicker when the lines go down if utility companies don’t have enough trucks and crew. And shortages of what we need—not consumers and businesses unwilling to spend—is the coronavirus economic challenge.

Coronavirus is causing a recession in China—Beijing’s statisticians who serve the Communist Party’s political bosses will likely tell us growth sank from about 6% to 3% in the first quarter of this year but those numbers will be about as legitimate as the claims of a used car salesman about an old clunker. .........(more)

https://www.marketwatch.com/story/theres-not-a-lot-the-fed-can-do-about-a-coronavirus-recession-2020-02-27?mod=home-page

[mitch96]

1. Sure they can....... BLAME tRUMP!!! NT