February 2020 Economic Recap
Stocks continued to plunge after the Federal Reserve slashed the benchmark interest rate to near zero on Sunday afternoon. The Fed announced it would buy $700 billion in Treasury and mortgage-backed securities, cut the rate banks are charged for short-term emergency loans, and initiated swap lines with five other central banks. Since then, the Fed has also reinstituted a number of other crisis era policies, most notably a funding facility to support commercial paper markets.
Globally, cases of the virus continue to climb well north of 200,000. Most economists are now expecting a global recession as countries move to close their boarders and shut down their economies. Estimates vary widely, but China’s data could give an indication as to what other countries will be facing. Talks of a number of large fiscal stimulus programs to offset this impact are under way.
For a deeper consideration of the economic data released during February, please follow the links below: