Monday’s guarantee by the Federal Reserve to buy unlimited US Treasury bonds and expand its asset purchase scheme saw an initially muted reaction from stock markets but, following agreement of a $2trn fiscal stimulus package by Congress, the S&P 500 ended up over 9 per cent on Tuesday. This strong move demonstrates a widespread belief that the economic remedy to this crisis requires government spending as well as monetary policy but, with coronavirus still on the rampage and US cases surging, markets will remain volatile.
To continue reading, register today
to enjoy limited access to the following:
- Daily trading news
- Funds coverage
- Features on big investment themes
- Comprehensive companies coverage
- Economic analysis