During a recent 60 Minutes interview, Federal Reserve Chairman Jerome Powell said there is “no limit” to what the Fed can do. Indeed, the central bank has pulled out all the stops.
But while the actions of the central bank are extreme, we’ve seen them operate out of this playbook before, if not at this level.
The Federal Reserve and the US government are rerunning the exact same policies they turned to in the wake of the 2008 financial crisis, but on a much grander scale. We have bigger QE, more money printing, more government spending and bigger deficits. Case in point — the money supply grew at a record rate in April with no sign of slowing down.