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A comment on Federal Reserve pledges asset purchases with no limit to support markets. Parent comment

Re:Federal Reserve pledges asset purchases with no limit to ... by matthewdgreen on Monday March 23, 2020 @09:14AM (#22663770)
How does the current Fed strategy help small business right now? If anything, it seems like this strategy will leave larger companies in a position to soak up those small businesses' market share when this is all over.
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Re:Federal Reserve pledges asset purchases with no limit to ... by dredmorbius on Monday March 23, 2020 @11:28AM (#22665003)
Indirectly, by avoiding a liquidity crunch.

Specific direct aid is called fiscal policy, and would have to be enacted by Congress (or possibly to a limited extent by the executive): reduced taxes, direct payments or credits, loan guarantees, government spending, other economic policy.

The Fed's tools are monetary policy, and manipulate the overall money supply. That's a powerful, but limited, power.

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Re:Federal Reserve pledges asset purchases with no limit to ... by Anon1096 on Monday March 23, 2020 @09:40AM (#22663988)
The Fed is set to announce small business loans very soon. This is just part of a larger plan.
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Re:Federal Reserve pledges asset purchases with no limit to ... by im3w1l on Monday March 23, 2020 @10:24AM (#22664357)
I'm really curious how startups are positioning themselves for the availability of such loans. Might the terms be so favorable that it drives out the VCs?
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Re:Federal Reserve pledges asset purchases with no limit to ... by thoughtstheseus on Monday March 23, 2020 @10:44AM (#22664566)
Unlikely. Even in these troubling times the fed likes to have assets backing loans. Maybe an SBA program could be competitive but not in the near term.
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