Weekly Market Snapshot – March 23rd, 2020
Created by: Sam Tenney
- Federal Reserve St Louis member James Bullard predicts the US economy will see 30% unemployment and possibly 50% reduction in GDP by second quarter 2020 due to corona virus related economic shutdowns.¹
- As of Monday, March 23rd, the Federal Reserve has created the Secondary Market Corporate Credit Facility (SMCCF). The objective of the SMCCF is to buy investment grade corporate bonds from the open market or ETF vehicles to support liquidity in these assets. In the same announcement the Fed has also uncapped QE restrictions, meaning they will buy any amount of government bonds back from investors.²
- The Bank of Japan (BOJ) in response to market troubles has agreed to double the central bank’s annual spending on ETF purchases, intended to more directly stimulate the Japanese market. As of Wednesday March 18th, losses on the BOJ’s preexisting ETF holdings reached 3 trillion yen.³
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