Comments from the Fed leader:

Comments from the Fed leader:

The headline comment from Powell is an unwitting admission from Powell that they're targeting the stock market. Otherwise, what are you taking a victory lap about?

  • We crossed a lot of red lines that had not been crossed before, I'm very comfortable saying that this is the situation to do that and you figure it out afterwards

The question going forward, is whether or not these powers will be used again in a 'less-extraordinary' situation. And moreover, how quickly will they be pulled back in a return to normal? I'd argue that they've put all these things in the regular tool box now.


  • We're days away from the first Main Street lending loans
  • This is far-and-away the toughest facility to set up
  • Trying to figure out the right credit products is quiet challenging
  • Forward guidance and QE are no longer non-standard tools
  • There are clearly some negative side-effects of negative rates
  • Almost 40% of people making $40,000 or less have been laid off
  • I would worry almost more that a second outbreak would undermine confidence
  • I don't see risk with what we're doing right now to inflation or financial stability
  • We're comfortable now but balance sheet can't go to infinity