3rd March 2020
https://www.youtube.com/watch?v=x4iSw3yKq5k
- reduce interest rates from 1.5-1.75% to 1-1.25%
- purchase of government bonds
- purchase of agency back mortgage securities
15th March 2020
https://www.youtube.com/watch?v=qhspIpGMaX4
- reduce interest rates from 1-1.25% to 0-0.25%
- effects are in very early stage within the US
- First signs affected industries
Tourism
- Hotel
- Travel industry
- otherwise not showing up in data but sentiment forecasts
Key take aways
- mandate
maximum employment
- price stability
- Context
Economy propped up by US consumers
- US unemployment is low
- Dealing with corona issue
Actual impact of US economy is uncertain
- Ultimate solution will come from health professionals
- Broader spread of the virus is what changed hence potential risk to the economy
- Uncertain how long the economy will take to recover
- Health care, Fiscal and Monetary policies