[https://www.marketwatch.com/story/what-the-fed-could-do-as-stock-market-rout-spreads-to-bonds-bank-lending-42b3a382](https://www.marketwatch.com/story/what-the-fed-could-do-as-stock-market-rout-spreads-to-bonds-bank-lending-42b3a382)
Rumours spreading that the Fed will intervene no later than Next week. The market rout has hurt hundreds of millions of people worldwide. It is now spreading to bank lending and the treasury bond market, this is another potential GFC type of situation.
The following forms need to be done
1. Emergency rate cut- 50 basis points.
2. QE - buying bonds, US Govt Treasuries- this is effectively QE or some form of QE
3. Other liquidity stabilisation initiatives e.g. loans/funds to Banks
As we know from the GFC, The capabilities/depth of the Fed is limitless in scope. Back then, it was prepared to money print several trillion to save the financial system. It once again has to go in, because Trump took on and easily destabilized a sensitive financial system(it had the GFC 18 years ago and COVID just a few years ago - it was still sensitive)
Trumps insane tariffs, my goodness, have caused in excess of 10 trillion dollars of wealth spoilage and constant business uncertainty on top of that, as not every business is listed and its starting to affect property, which is not listed either. Property market cap is in the several tens of trillions worldwide, as is the global bond market.
This is pure and utter madness by one man. I am an economics graduate and have never seen anyone or anything this mad before. His whole administration is just plain nuts do this. Its like WWIII but this time with economics which is even worse.
Frankly, ive become sick of his polices and its about time someone did something to stop this madness.
Please FED, intervene, atleast the shorters will go for some time, until Trumps next round of tariffs(!)