The Fed catches a falling S&P 500
About the author:
- Author name:
- By Michael Knox
- Job title:
- Chief Economist and Director of Strategy
- Date posted:
- 17 March 2020, 1:00 PM
US Health Czar Dr. Anthony Fauci tells us that July is the longest this emergency can last. I discuss this, as well as the effectiveness of the Fed's stimulus package.
"The Fed has thrown an enormous amount of liquidity at the market. Volatility is only able to sustain itself in the absence of liquidity.
So this enormous amount of liquidity (cutting rates and recommencing quantitative easing) will burn away the volatility within a period of no more than three months.
By the time we get to that period, we’ll have a much better horizon of when this emergency is going to end and I think it will end by the middle of the year."
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