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.
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.