Posted on 03/06/2020 9:37:20 AM PST by weston
Stocks are set to jump Monday, reversing major overnight losses after the Federal Reserve announced earlier in the morning that it would buy unlimited amounts of bonds to counter the effects of the coronavirus pandemic.
S&P 500 futures rose nearly 2% in premarket trading following the central bank announcement.
In overnight trading, stock futures were down as the Senate on Sunday failed to advance a $1.3 trillion relief package aimed at curbing the economic damage caused by the spread of the coronavirus. Trading on the S&P 500 was temporarily halted as losses hit 5%.
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The central bank noted that the first priority must be to address the spread of the coronavirus, but said that “aggressive efforts” were justified to limit job losses and support a strong recovery once the virus abates.
The Fed will create three new lending facilities: Two to help create and then buy bonds issued by large corporations and help generate securities backed by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration.
Monday’s actions mirror ones the Fed took in 2008 as market credit markets experienced the equivalent of bank runs. To backstop those markets, the central bank rapidly bought enough securities to expand its balance sheet from under $1 trillion to above $2 trillion.
Then, as the economy failed to recover in the subsequent years, the Fed engaged in large-scale bond purchases meant not just to prevent panic in specific credit markets, but also to spur spending economy-wide by lowering interest rates. Those bond purchases, known as quantitative easing, eventually ballooned the Fed’s balance sheet to $4.5 trillion. The central bank had begun shrinking its balance sheet in 2018 as unemployment neared record lows but now has abruptly reversed course.
@realDonaldTrump
· 1h
Robert, we will end up stronger than ever before. Thank you!
Quote Tweet
Robert Barnes
@Barnes_Law
· 9h
Replying to @TomFitton and @realDonaldTrump
If Trump saves us from the Depression everyone else was leading us into by reversing the country's course on this, I am going to build a statute to him in my front yard (paid for by my successful bets he has won for me).
Where is this jump of which you speak?
Reality check:
-Booming economy, gone
-Businesses closing
-Unemployment soaring
-Hysteria & fear rule
Which is worse, the illness or our "fix"?
Americans stand up to challenges. Don't succumb to fear! Trust in God.
Protect yourself and others, and move forward!— Rep. Jody Hice (@CongressmanHice) March 23, 2020
Rainy and gloomy here today.
But I think we see POTUS at work in realtime—he is salting the very correct idea that we do a course correction after the 15 days are up.
Lockdown orders here in DE take effect 8:00 am Tuesday.
Larry Hogan of MD makes an announcement at 11:00 am. Sure it will be along the same lines.
In DE we have about 60 affected patients, five in the hospital, the rest at home.
The lockdown is in effect until May 15, unless the situation changes.
So we are tanking the economy of DE over 5 people in the hospital.
It is going to change sooner than anyone thinks.
That is what Trump was alluding to yesterday.
One more week we can tolerate.
After that, we need to show those in power who’s boss.
Me too! ( we can start our own ME TOO movement )
The lack of shame with which Schumer and Pelosi try to blackmail President Trump,Leader McConnell and leader Mccarthy is breathtaking.Millions of Americans need help -these two Democrats are blocking the help to try to force leftwing policies and money for their interest groups.— Newt Gingrich (@newtgingrich) March 23, 2020
Democrats doing their best to make sure the"fix" deals a fatal blow... .
They hate Trump and Trump voters so much they would destroy the country - leave it in ashes - If they thjought they could bring president Trump down.
Newt, it has a name. Name it! They want abortion! They want to kill babies faster than the flu is killing the elderly! Population control!
JUSTICE!! Hallaton Inc. is the 8th DOJ settlement case of companies who discriminate against US workers while hiring H-2B visa workers over qualified U.S. workers.
They have to pay $80k per US worker they discriminated against! ⚖️https://t.co/unexyJKMIP— Twitmo Inmate (@K155MYA55) March 23, 2020
STRONG & UNITED, WE WILL PREVAIL! GOD BLESS THE USA!!pic.twitter.com/T6UCyaPRIy— Donald J. Trump (@realDonaldTrump) March 23, 2020
Ned Ryun
@nedryun
·
45m
I’m of the opinion the real cases are 10x confirmed, so more like 350,000 to 400,000, maybe higher. With deaths at 471 this morning, real mortality rate is more in neighborhood of .1%.
@realDonaldTrump
is right to hint at less restrictive approach.
Video message from General O'Shaughnessy, our Commander, about our Commands and our priorities during #COVID19. #WeHaveTheWatch #SacredMission #HomelandDefense pic.twitter.com/ulN64DYwkO— U.S. Northern Command (@USNorthernCmd) March 23, 2020
@johncardillo
· 46m
. @realDonaldTrump gets it. He knows this is crushing our economy and there’s no reason to shut down for a day longer than necessary. He also knows the economy can quickly bounce back. Reevaluating in two weeks is smart and sound.
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