For my 5th Blog comment, I read the Brookings article "What did the Fed do in response to the COVID-19 crisis?" by Eric Milstein and David Wessel. Looking back at this topic from when this article was written two years ago, it is interesting to look at the insight of how the world was and how the response to COVID-19 was viewed, especially with the virus still running rampant during December 2021. A theme that is interesting to look back on is the many different areas the Fed went to like the supporting of small and mid-size businesses and the use of the Paycheck Protection Program, or PPP Loans. I remember this was a crucial topic of which businesses were…
For my fifth blog post I chose the Brookings article, "What did the Fed do in response to the COVID-19 crisis?" by Eric Milstein and David Wessel. The Brookings article discusses the actions taken by the Federal Reserve in response to the COVID-19 pandemic. The article notes that the pandemic led to an unprecedented economic crisis, with widespread job losses and disruptions to financial markets.In response, the Federal Reserve took a number of steps to support the economy and stabilize financial markets. These included lowering interest rates to near-zero, implementing a range of lending programs to support businesses and households, and purchasing large quantities of government bonds and other securities.The article notes that these actions were intended to provide suppor…
For the 5th blog comment, I have chosen the “What did the Fed do in response to the COVID-19 crisis?” Article written by Eric Milstein and Davis Wessel in December 2021. Prior to reading this article, my knowledge of the roles and responsibilities of the Fed was limited to modifying funds rates in order to meet the two primary goals of (1) controlled inflation and (2) maximum employment.
From the article, I was intellectually stimulated to find the exact policies and programs that were introduced in an attempt to recover the U.S. economy during and post Covid-19. First, as Chair Jerome Powell stated, “We are deploying these lending power to an unprecedented extant... will continue to use these power…
In the article, “The Fed: Everything It Did So Far / What More Could It Do?”, The authors, Eric Milstein and David Wessel discuss the economic actions that the Fed took after the massive market crash following the coronavirus outbreak and subsequent lockdowns. The three policies the Federal Reserve took were, Quantitative easing, an economic tactic used in the Great Depression where The Fed buys up large amounts of securities and bonds injecting cash into the economy. Forward guidance, a policy which was used after the market crash from 2007 to 2009 is when the Fed drastically lowers interest rates, after the coronavirus pandemic the Fed dropped interest rates to near zero in order t…
Keeping with this week’s theme on monetary policy, I am continuing to blog on the write on the article about “What did the Fed do in response to the COVID-19 crisis?” In the last blog comments, I wrote about how the Federal Reserve manipulated the federal funds rate and discount rate as monetary policy tools to easy the COVID-19 impact on the economy. The Federal Reserve also uses quantitative easing (QE) as a tool to reduce interest rates. QE is a monetary policy strategy used by central banks like the Federal Reserve. With QE, a central bank purchases securities in an attempt to reduce interest rates, increase the supply of money and drive more lending to consumers and businesses. Beginning…
For my 5th Blog comment, I read the Brookings article "What did the Fed do in response to the COVID-19 crisis?" by Eric Milstein and David Wessel. Looking back at this topic from when this article was written two years ago, it is interesting to look at the insight of how the world was and how the response to COVID-19 was viewed, especially with the virus still running rampant during December 2021. A theme that is interesting to look back on is the many different areas the Fed went to like the supporting of small and mid-size businesses and the use of the Paycheck Protection Program, or PPP Loans. I remember this was a crucial topic of which businesses were…
For my fifth blog post I chose the Brookings article, "What did the Fed do in response to the COVID-19 crisis?" by Eric Milstein and David Wessel. The Brookings article discusses the actions taken by the Federal Reserve in response to the COVID-19 pandemic. The article notes that the pandemic led to an unprecedented economic crisis, with widespread job losses and disruptions to financial markets. In response, the Federal Reserve took a number of steps to support the economy and stabilize financial markets. These included lowering interest rates to near-zero, implementing a range of lending programs to support businesses and households, and purchasing large quantities of government bonds and other securities. The article notes that these actions were intended to provide suppor…
For the 5th blog comment, I have chosen the “What did the Fed do in response to the COVID-19 crisis?” Article written by Eric Milstein and Davis Wessel in December 2021. Prior to reading this article, my knowledge of the roles and responsibilities of the Fed was limited to modifying funds rates in order to meet the two primary goals of (1) controlled inflation and (2) maximum employment.
From the article, I was intellectually stimulated to find the exact policies and programs that were introduced in an attempt to recover the U.S. economy during and post Covid-19. First, as Chair Jerome Powell stated, “We are deploying these lending power to an unprecedented extant... will continue to use these power…
Stimulating the economy after Covid-19
In the article, “The Fed: Everything It Did So Far / What More Could It Do?”, The authors, Eric Milstein and David Wessel discuss the economic actions that the Fed took after the massive market crash following the coronavirus outbreak and subsequent lockdowns. The three policies the Federal Reserve took were, Quantitative easing, an economic tactic used in the Great Depression where The Fed buys up large amounts of securities and bonds injecting cash into the economy. Forward guidance, a policy which was used after the market crash from 2007 to 2009 is when the Fed drastically lowers interest rates, after the coronavirus pandemic the Fed dropped interest rates to near zero in order t…
Keeping with this week’s theme on monetary policy, I am continuing to blog on the write on the article about “What did the Fed do in response to the COVID-19 crisis?” In the last blog comments, I wrote about how the Federal Reserve manipulated the federal funds rate and discount rate as monetary policy tools to easy the COVID-19 impact on the economy. The Federal Reserve also uses quantitative easing (QE) as a tool to reduce interest rates. QE is a monetary policy strategy used by central banks like the Federal Reserve. With QE, a central bank purchases securities in an attempt to reduce interest rates, increase the supply of money and drive more lending to consumers and businesses. Beginning…