US President Trump: Called Fed’s Powell on Monday, told him he did a good job

US President Trump has called Federal Powell on Monday, telling him he did a good job following unlimited QE. The US Federal Reserve announced a broad-set of initiatives designed to support the interest rate markets and businesses, including open-ended purchases of treasury, agency and mortgage-backed securities.

Also, a new USD300bn fund to is established to provide consumer and business credit flow, two facilities for large employers, support for the corporate bond market, Term Asset-Backed Security Loans to support consumer and business credit, and business lending programs to support SMEs.

Meanwhile, markets are expecting the US government fiscal rescue initiatives to be finally agreed although there are still disputes between Democrats and Republicans persist, the parties presenting opposing bills.

Market implications

Stimulus from the Fed is welcomed but the people need cash. Jobless rates will be sky high and trying to buy stocks is like trying to catch a falling knife. 

• Wall Street Close: Benchmarks in the red as Fed steps up QE