Editorials

Fed Cut Rates To Zero And Starts QE

The Fed cut rates to a target range of 0% to 0.25% effective March 16, and said it would expand its balance sheet by at least $700 billion in coming weeks through quantitative easing.

Repo operations will continue to be offered for at least $175 billion in overnight repo loans, at least $45 billion in two-week term repo twice per week, and $500 billion in one-month term repo and $500 billion in three-term-month term repo each week. 

The Chinese city of Wuhan reported just five new cases of Covid-19 on March 12, and no locally transmitted new infections reported in the rest of China. The Chinese economy is returning to normal. Chinese expert Zhang Boli said new Covid-19 cases in Wuhan may drop to zero by the end of March.  Occasional new cases may still be reported. South Korean president Moon Jae-in said that the virus is expected to "disappear before long".  President Trump said the virus will likely "go Away" in April because of the warmer weather.  Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases stated, "It is not unreasonable to make the assumption the cases of Covid-19 will die down in spring". 

Conservative radio host Rush Limbaugh has accused the fake media of over hyping the 2019 Coronavirus. "The drive-by media hype up this thing as a pandemic.  Ninety-eight percent of people who get the Coronavirus survive. it's a respiratory system virus".

With interest rates a zero, and $30 oil, the U.S. economy is expected to come roaring back in the Fall. President Trump has declared Sunday March 15, as a "National Day of Prayer" amid the worldwide outbreak of the novel Coronavirus and said he will monitor a church service online. 
 

© 2016 - 2020 Steve Johnston - All Rights Reserved.
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