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.”