The chairman of Federal Reserve Chair Jerome Powell and his associates are having a tough time as the pandemic outbreak has made things worst from February till today. So, if the Fed is sticking to getting only high-end contracts then it might be slammed for showing favoritism to Wall Street and not to Main Street.
Meanwhile, if they become resourceful then it will help several sections of the economy but even this has its own disadvantage as they will be criticized by taxpayers for reaching more, choosing winners and losers and saving the worthless.
But now they have planned to get innovative that any Fed heads have done before since the origin of central Bank in 1913. It has not only brought back exclusive loan schemes from 2008-2009 financial breakdowns but also created new schemes to save both large and small scale businesses.
Further, Powell’s next precursor Janet Yellen stated it as “rapid and enormous,” and Ben Bernanke who was known for his creative Fed activism said that Jerome’s actions are “important and difficult.”
Fed’s aim of giving loans has not avoided recession but in turn, it prevents the financial system from evaporating.
As the Fed is ready to help investors are also ready to buy. This has enabled to cut down interests and paving the way to lenders to do self-finance and stick to their business. And shares have been coming back to point from the last of March.
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