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The Fed made a bold move to calm shaky bond and credit markets. But is it enough?

March 16, 2020

Via: Fortune

Investors and traders around the world were anxiously waiting on Monday to see if the U.S. Federal Reserve’s sweeping moves Sunday to inject additional liquidity into the economy would restore normal market conditions.

The Fed’s goal is not to save the stock market: it’s to protect the real economy from worrying signs that both cash and credit are drying up, and the banks, which provide essential grease to the markets, have stopped lending as usual.

The question now is whether the Fed’s move—or any move—will be enough to staunch the spread of the coronavirus contagion in the real economy.

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