The mother of all QEs is here - @federalreserve has announced:
a. Interest rate cut by 100bps to 0% - 0.25%
b. Emergency lending rate cut by 125 basis points to 0.25%,
c. Increased the emergency lending term of loans to 90 days.
#USD #FEDrate
#QE5
(1/n)
a. Interest rate cut by 100bps to 0% - 0.25%
b. Emergency lending rate cut by 125 basis points to 0.25%,
c. Increased the emergency lending term of loans to 90 days.
#USD #FEDrate
#QE5
(1/n)
d. Buying of $500 BN of Treasurys and $200 BN of agency-backed mortgage securities.
e. Pushed major banks to use the equity + liquid buffers ($1.3 TN + $2.9 TN) for lending and manage credit expansion.
e. Pushed major banks to use the equity + liquid buffers ($1.3 TN + $2.9 TN) for lending and manage credit expansion.
Instantly, eight largest U.S. banks (Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street, and Wells Fargo) have suspended share buybacks program to support the Fed's idea of credit expansion.
#bankofamerica #CITIBANK
#bankofamerica #CITIBANK
The US Dollar should react to this monetary policy action - Fed buying will lead to fall in DXY, in turn, emerging nations currency should show signs of strength.
#USD #USDMXN #USDINR #fedreserve #DXY
#USD #USDMXN #USDINR #fedreserve #DXY
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