[chadmeister]

Awful policy. The fed needed to hold off on this and the previous rate cut until Congress finally passed a useful bill. Powell had all the power to force Congress to act and he's blown it again.

[lukas099]

The Fed's job is to keep the value of currency steady and support full employment, not to play games with Congress.

[onlyrealcuzzo]

The dollar index is well within its normal range.

No amount of buying corporate debt will keep people employed.

This is to artificially reflate asset prices.

[hnaccy]

How can the Fed support full employment if governments are forcing people to stay inside and business to close?

[OscarCunningham]

By making lending to the closed businesses so attractive that they can stay open over the course of the quarantine. (Likewise people can stay fed.)

[onlyrealcuzzo]

But that's not what this is doing at all. This is keeping existing corporate debt artificially priced.

Unless they lower rates to negative, new debt isn't getting any cheaper.

[dageshi]

If the fed plays politics, the politicians will play politics back, but harder.

[elamje]

Wrote a thread about a different perspective of the Fed. I want to gently suggest that your concept of what the Fed is, is not correct. It’s complex, and a very unique government/private entity, but it certainly is explicitly not supposed to respond to any sort of political influence.

https://mobile.twitter.com/elamje/status/1242129602040008704