“Getting to the corporate bond market was critical. Bill Ackman the hedge fund investor and managing partner of Pershing Square Capital Management, during an interview with Bloomberg, sound cautiously optimistic, claiming he had closed his shorts and was "100% long". Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website. In an unprecedented move, after the Fed already cutting rates to zero, launched unlimited Quantitative Easing. Expensify CEO Emails 10 Million Customers Urging Them to Vote for Biden, Gilead’s Remdesivir Becomes First Virus Treatment to Win FDA Nod, Get Ready for an Eye-Popping U.S. GDP Number, U.S. Stocks Rise With Treasuries Amid Aid Talks: Markets Wrap, U.S. Cases Surge Past 70,000; France Tops Record: Virus Update. This article was issued by George Grech, Head of Operations at Calamatta Cuschieri. Stocks fell 4.5% in New York. Before Wall Street opened the Fed announced that its new plan was to provide infinite amounts of money through its quantitative easing programme.

The package included several unprecedented steps for the Fed, including intervention in the corporate bond market, purchases of commercial asset-backed mortgages and exchange-traded funds, and, if Congress clears the way, a significant Main Street lending program directly aimed at aiding small businesses. QE added almost $4 trillion to the money supply and the Fed's balance sheet. “Wow, just wow,” George Rusnak, head of investment management at Wells Fargo Private Bank, said on Bloomberg Television. The U.S. economy is reeling as cases rise and the death toll mounts. This allows for potentially unlimited quantitative easing. Have a confidential tip for our reporters? time by changing your browser settings or contacting your ISP. For more information visit, www.cc.com.mt. This matches similar comments by the Federal Reserve that it has unlimited money. The Federal Reserve, racing again to contain mounting economic and financial-market fallout from the coronavirus, unveiled a sweeping series of measures that pushed the 106-year old central bank deeper into uncharted territory. They represent a dramatic reaction to the sudden stop inflicted on the economy by the contagion and by the subsequent panic among investors. A lot of people needed to be clear the QE was unconstrained.”. While US Markets initially spurted higher, the rally did not last long as Washington remained deadlocked on a US bailout bill with the S&P 500 index shedding 2.93%, while the NASDAQ composite index performing gallantly better with a nominal loss of 0.27%. The Fed’s latest steps landed as investors wait for U.S. lawmakers to deliver a multi-trillion dollar package of coronavirus support, which failed to come together Sunday when Democrats objected that it did not do enough for average Americans. — With assistance by Craig Torres, Matthew Boesler, Vince Golle, Jeff Kearns, Benjamin Purvis, Steve Matthews, Saleha Mohsin, and Anna Edgerton, Central bank unveils slew of efforts for household, employers, Fed to announce soon a small business Main Street loan program, Fed Signals Unlimited QE With All-In Pledge. Monday’s Fed action followed an already-dizzying number of steps taken by Chairman Jerome Powell in the past three weeks that would have been unthinkable just months ago. Yet another program, a Term Asset-Backed Securities Loan Facility, will “enable the issuance of asset-backed securities backed by student loans, auto loans, credit card loans, loans guaranteed by the Small Business Administration and certain other assets.”, The central bank also said it would expand the existing Money Market Mutual Fund Liquidity Facility to include a wider range of securities, including municipal variable-rate demand notes. As a result, quantitative easing became the central bank's primary tool to stop the crisis. Updates with outlook for more actions in sixth paragraph, plus markets in ninth. Read More: Muni Market Support for Federal Reserve Intervention Grows. The draft of an economic aid bill currently being hashed out on Capitol Hill included $425 billion for the ESF to support Fed actions. “Hopefully you’ll come out of this with some fiscal stimulus as well, and you’ll be set with good growth opportunities in the long run.”. Until 2020, it was the largest expansion from any economic stimulus program in history. But the historic commitment to unlimited quantitative easing – or purchases of government bonds and mortgage-backed securities – means the … Before it's here, it's on the Bloomberg Terminal. Independent Online.