Thornburg Investment Management’s Jason Brady in Bond Buyer

Fed did its job, analysts say, but markets need more

The Federal Open Market Committee lowered the fed funds rate target to between zero and ¼% in an emergency meeting on Sunday, but while analysts say the move was needed, they feel it will take more to offset the effects of COVID-19.

“The Fed did its job. Now it is up to members of Congress to do theirs,” said Diane Swonk, chief economist at Grant Thornton. “They have a very long way to go. We will need bailouts and cash in people’s hands to cover basic needs of food and shelter. The cost-benefit analysis on this is simple. If Congress fails, the recession will be deeper and the carnage it triggers will be longer. Pandemics have end dates; financial crises do not.”

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