Fed cuts to zero

Well well well, the Fed has decided to actually set its cash rate target at a range of 0-25bps.


The focus of the Committee’s policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve’s balance sheet at a high level

I suppose we can see the Federal Reserve jumping into the Treasuries market and getting deeper into mortgage backed securities.

the Federal Reserve will also implement the Term Asset-Backed Securities Loan Facility to facilitate the extension of credit to households and small businesses

Looks like the Fed is taking its role as lender of last resort to heart 😉