On Tuesday, the Federal Reserve injected another $500 billion into the economy to prop up Wall Street amidst coronavirus panic.
“This action is taken to ensure that the supply of reserves remains ample and to support the smooth functioning of short-term U.S. dollar funding markets,” the Fed’s said in a statement released on Tuesday.
The big banks are saying that much more stimulus will need to occur to keep markets afloat following a Monday that was the worst day for Wall Street since 1987. Corporate giant Bank of America is saying that the Fed may need to start a commercial paper lending facility similar to what they did in 2008 to lubricate the “frozen” market.
Just yesterday, Liberty Conservative News reported on how the Fed slashed interest rates over the weekend, and the measures did nothing to prevent a massive market dip:
“The Dow Jones Industrial Average fell by 2,800 points on Monday, in spite of massive intervention conducted by the Federal Reserve to prop up the markets…
This occurred after the Federal Reserve announced on Sunday that the borrowing range would be set between 0 percent and 0.25 percent, which they hoped would ease coronavirus-related fears from investors. Their inflationary plotting failed to stem the damage, but they will not be turning back despite their incredible failure.
The Fed’s Open Market Committee has announced that the rates will stay at these levels “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.” They claimed they were taking this action because ‘the coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States.’”
Last week, Liberty Conservative News reported on the stunning $1.5 trillion in stimulus that the Fed injected into the economy as the coronavirus panic really started to pick up:
“The Fed issued stimulus for the second day in a row and for the third time this week as buyers panic due to corona-driven recession fears. They are going on an asset-buying spree to assist Wall Street’s efforts to maintain the status quo during the crisis.
“These changes are being made to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak,” the New York Fed announced on Thursday afternoon…
“We continue to emphasize that this Fed will act aggressively and in particular that central banks are focused on safeguarding market functioning at this point, and will continue to provide liquidity in scale,” said Ebrahim Rahbari, director of global economics at Citi Research.
“However, despite the sharp initial risk rally, we think these measures will still not be sufficiently to durably stabilize market sentiment yet in light of credit concerns and escalating health concerns,” Rahbari added.
The stimulus spending by the Fed is expected to go until at least April 13. Analysts are noting that the problem isn’t necessarily the coronavirus, but an economy that is built largely on debt accumulation and endless consumer spending.”
A massive recession, or perhaps even depression, may be in order because of the Fed’s reckless actions, as they global prosperity in jeopardy to keep Wall Street’s rigged ponzi scheme propped up a little while longer.