Unlimited QE and Why Markets Can't Price In COVID-19

The market reacts as the U.S. Federal Reserve announced effectively unlimited capital injections including a new array of direct asset purchase tools.

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, IHeartRadio or RSS.

Last October, Ikigai Asset Management’s Travis Kling predicted central banks would have to “juice QE to infinity” in order to save markets from recession. Yesterday on "60 Minutes," Fed President Neel Kashkari said that“there is an infinite amount of cash at the Federal Reserve. We will do whatever we need to do to make sure there is enough cash in the financial system.”

This was followed this morning by an announcement the Fed was giving itself effectively unlimited capacity to intervene in markets. Markets were...still not impressed. In less than two hours, an initial gain had entirely retraced.

On this episode of The Breakdown, @NLW looks at:

• Specifics details of the Fed Announcement
• Why FinTwit and Bitcoin Twitter are focusing on inflation
• Why some think this action amounts to a nationalization of markets
• How the "money printer go brrr’ meme is taking hold

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, IHeartRadio or RSS.

See also: Into the Unknown: No Limit on Fed Money Injections