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The Fed returns to support risk once more, but China reinfection still a concern
The Federal Reserve has come to the rescue of the risk recovery once more. Just as the momentum of a corrective move was building, the Federal Reserve has announced that it will sweep in and buy up US corporate debt. A move to support liquidity and the availability of credit to large US companies. Market focus has switched from concerns over a building second wave of COVID-19 infections in Beijing, to the “Powell put” once more. The old adage “don’t fight the Fed” has again come to the fore. Risk appetite has picked up and Wall Street turned completely on its head again. What had looked to be a session of ... (full story)