The Fed Rate drops to 0%, issues new stimulus, eliminates reserve requirement. What does this all mean?
|Tatiana Koffman 👩🏻🔧||Mar 18|| 2|
What a week. And it’s only Wednesday.
On Sunday, the Fed enacted 3 new drastic policy measures.
On Monday, the Dow Jones dropped a historic 3,000 points.
On Tuesday, the Fed announced a new $500B repo operation into the market.
On Wednesday, the president announced mailing Americans a check to help them through the coronavirus epidemic.
This is the most intense news cycle since 2008. So many of us don’t understand how these new policies will affect us. Most of us did not study economics in school and frankly, as someone who did, and worked in finance for years, some days I’m still confused.
In an effort to uncomplicate the complicated, this article explains the Fed’s new decisions in plain English. I did my best to provide some historical and structural context as well, for those of us new to the game.
As always, reach out with any feedback on Twitter. And share this with a confused friend. They’ll thank you.
Tatiana Koffman —> firstname.lastname@example.org
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