The Fed: Avoiding a Depression
From blog.pimco.com
The U.S. economy will enter a recession this year, but the Federal Reserve’s 23 March announcement that it will buy an unlimited amount of Treasury and mortgage-backed securities (MBS) and introduce numerous facilities aimed at stabilizing the financial system may help avoid longer-term damage and accelerate economic recovery. The Fed’s immediate goal is to keep credit flowing to the real economy. In recent weeks, the sheer size of the risk aversion and flight-to-cash exhibited by investors has overwhelmed financial markets and the securities dealers and banks that are charged with intermediating markets and ...
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