Special Report

Coronavirus Federal Reserve Special Report

March 2020

Federal Reserve Delivers Aggressive MonetaryPolicy Early in Coronavirus Outbreak

Fed makes decisive rate cuts. Federal Reserve pulls all the levers to bridge the U.S. economy through a global pandemic. The Federal Open Market Com­mittee (FOMC) unleashed its broad and sizable arsenal this week, highlighting the impact COVID-19 will have on the na­tional economy and the central bank’s willingness to be accom­modative early in the cycle to dampen an economic downturn. Nonetheless, an increase in unemployment claims and job cuts is unavoidable as a significant wave of retail, hospitality, travel and other parts of the consumer-based economy are shuttered. Congress is also undertaking dramatic efforts to minimize the consequences of job losses. Uncertainty surrounding the impact of these actions remains high, though little doubt remains on the willingness of the central bank to move far more quickly to prop up markets and the economy than during the early days of the Great Recession.
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