By Adam Button
The Fed has done more in the past six weeks than any time in its history in a series of moves that has broken all pre-COVID-19 era rules. Wednesday’s is a chance to outline the post-virus playbook. The was the top performer Tuesday while the lagged.
The US central bank has rolled out nearly 20 new programs since the epidemic, most of them with little scrutiny or long-term planning. Make no mistake, the Fed’s actions saved the financial system but the fragility in the system was also a product of the past decade of central bank policy.
On the face of it, Wednesday’s is less-important because it is unlikely there’ll be any new policy actions, and certainly nothing major. But the guidance will be critical, right down to the tone.
The Fed is no-doubt cognizant at the risks of overshooting and setting up future problems. It’s undoubtedly heard the criticisms about the truly astonishing pace of QE and bond-buying programs. This…