Expansive Fed response risks damaging market efficiencies, sources say

Powell_fed_PA_575x375_MARCH3_2020.jpg
By Jennifer Kang
29 Apr 2020

The Federal Reserve reassured jittery markets on Wednesday that it is committed to using the full range of policy responses available to it in order to blunt the impact of the Covid-19 crisis, though some in the market fear that the central bank’s aggressive response will do longer term damage to market efficiency once the pandemic subsides.

At its regular meeting of the Federal Open Market Committee, the Fed reinforced its message that it is “committed to using its full range of tools to support the US economy,” drawing attention to the growing list of programs introduced to buffer the economy against the ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial