Coronavirus 

Fed money taps on full blast as markets guzzle cash

Fed money taps on full blast as markets guzzle cash

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.

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