There's not a lot the Fed can do about a coronavirus recession
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MarketWatch) The coronavirus is like a terrible hurricane heading for the coastline its gaining momentum but the public health and economic consequences are still quite tough to predict.
What is easier to say is that anything the Fed can do to assist the economy will be palliativecalls for the Fed and other central banks to act quickly are misplaced at best and more likely downright dangerous.
The most important thing to recognize is that fiscal and monetary policya quick tax cut or jolt of infrastructure spending and Fed interest rate cuts and bond purchaseswill be akin to passing out candles. They wont bring back electric power any quicker when the lines go down if utility companies dont have enough trucks and crew. And shortages of what we neednot consumers and businesses unwilling to spendis the coronavirus economic challenge.
Coronavirus is causing a recession in ChinaBeijings statisticians who serve the Communist Partys political bosses will likely tell us growth sank from about 6% to 3% in the first quarter of this year but those numbers will be about as legitimate as the claims of a used car salesman about an old clunker. .........(more)
https://www.marketwatch.com/story/theres-not-a-lot-the-fed-can-do-about-a-coronavirus-recession-2020-02-27?mod=home-page