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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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To: nicewatch who wrote (13640)8/3/2025 1:19:22 AM
From: elmatador  Read Replies (2) of 13771
 
The Fed did not wait for the data during COVID. It acted proactively

“We are deploying these lending powers to an unprecedented extent [and] … will continue to use these powers forcefully, proactively, and aggressively until we are confident that we are solidly on the road to recovery,” Jerome Powell, chair of the Federal Reserve Board of Governors, said in April 2020.

Forward guidance: Using a tool honed during the Great Recession of 2007-09, the Fed offered forward guidance on the future path of interest rates. Initially, it said that it would keep rates near zero “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.”

And now? What is Powell doing? He wants to wait for the data!

In that same month, Powell discussed the Fed’s goals during a webinar at the Brookings’ Hutchins Center on Fiscal and Monetary Policy. This post summarizes the Fed’s actions though the end of 2021.

brookings.edu.
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