scorecardresearchIs Fed action adequate to curb US banking crisis?

Is Fed action adequate to curb US banking crisis?

Updated: 27 Mar 2023, 12:11 PM IST
TL;DR.

During crisis, Fed intervention proceeds in two stages: a) Financial sector stability: Emergency repo liquidity injections to check the unfolding panic; b) Economy growth: Outright asset purchase program/rate cuts (QE) to support growth. In the first stage, banks control the expansion in Fed’s balance sheet while in second, it’s the Fed.

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Economy: Is Fed’s put back?
First Published: 27 Mar 2023, 12:10 PM IST