Today was the highly anticipated press meeting teleconference with Fed Chairman Jerome Powell and the MSM. These meetings are always very interesting and worth watching not necessarily for the scripted speech but the Q&A after where the real truth starts to come out. Remember its the press’s job to ask the same question but in many different ways in an attempt to get real answers on matters like fiscal policy.
Here is what we know so far..
- There is no timeline or end point on fiscal stimulus from the Fed, aka infinite QE
- They have 10 stimulus programs running right now, 9 of those programs will lend $2 trillion
- The Fed has cut funding rate to lower bound (close to 0)
- Purchased almost $2 trillion in Treasuries and mortgage related assets
- The Fed’s portfolio of bonds, loans and new programs will swell to $8 trillion–$11 trillion, economists estimate.
- The Feds balance sheet/portfolio has reached a record high $6.6 trillion
Powell reiterated many times that they “have plenty of money” and that they will continue to do everything they can based on the powers of the Fed Reserve act and that which the government has allowed them. Its worth a quick watch on 2x the speed.