Intro to why today is important:
-During times of crisis and specifically high unemployment, congress tends to make the biggest changes to the federal reserve’s power.
-Congress will either clip the wings of the fed or empower the fed. But it appears in a typical cycle they clip the wings of the fed first
– Fed’s job is to take the blame
livestream link starts at 10am the link. note that this is a 2-day event it runs tomorrow too.
He’s going to say the following:
- the Fed has lots of ammunition
- they are prepared to print money forever to make more jobs
- he will dodge any questions relating how exactly money was spent in their SPVs, and which companies got loans (he’ll say he doesn’t know, or some BS about privacy or being unable to disclose for some reason)
- he will say that he does not expect to use negative interest rates, because he’s not convinced they even work
- he will say there’s no “moral hazard” because the virus was a “black swan” event, so it’s okay to print money and give free money to bond holders and big companies
- he will be grilled on why main street is not getting any help from the Fed, and he’ll provide a bunch of nothing burgers that essentially amount to saying “idk, don’t care tbh”
You heard it here first.