Fed brings out big guns, investors fear the worst

Lewis Krauskopf - Reuters - March 15, 2020

Excerpt below:

NEW YORK (Reuters) - A massive rollout of easing measures by the Federal Reserve served to deepen some investors’ anxiety over how effectively policymakers will be able to mitigate the economic damage from a spreading coronavirus pandemic.

Some market watchers said the Fed’s actions were reminiscent of its efforts to help the economy emerge from the financial crisis more than a decade ago — a worrying comparison to many investors.

“Markets see Fed replay of 2007-8-9 and are assuming a repeat of the financial crisis is at hand,” said David Kotok, chief investment officer at Cumberland Advisors.

The Fed acted to mitigate the economic fallout as governments around the world sought to stem the spread of the virus that has infected over 156,000 people globally and killed more than 5,800.

Read the full article at Reuters: https://www.reuters.com/article/us-health-coronavirus-markets-fed/fed-brings-out-big-guns-investors-fear-the-worst-idUSKBN2130CZ

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