The world has been focused on the coronavirus outbreak that’s claimed 105,612 cases and 3,562 deaths to date. The pandemic has caused government leaders to react and central banks are breaking out tools from their arsenal of monetary easing schemes. The world’s central banks say the public health emergency and international concern over the global economy gives them reason to issue helicopter money, print fresh stimulus and cut interest rates significantly.
Also read: 13 Crypto Debit Cards You Can Use Right Now
Coronavirus Crisis Pushes Monetary Easing to New Heights
The coronavirus pandemic has overshadowed everything. People also don’t realize that the global economy was already facing a recession prior to the outbreak. During the latter half of 2019, news.Bitcoin.com reported on the situation as 37 central banks participated in stimulus and easing practices. Major financial institutions like the U.S. Federal Reserve, the European Central Bank (ECB), the Bank of Japan (BoJ), and People’s Bank of China (PBoC) started using their tools well before the outbreak. In Q4 2019, the Fed not only slashed rates three times, but pumped the balance sheet up significantly while giving private institutions billions via overnight repos. The 16th Chair of the Fed, Jerome Powell, told the press that the central bank’s current easing practices were not at all like the quantitative easing (QE) that took place after the 2008 economic crisis. “In no sense is this QE. This is nothing like it,” Powell stressed on October 8, 2019.
Founder and CEO of Compound Capital Advisors, Charlie Bilello, tweeted about the irony of Powell’s statements on Thursday. “Fed balance sheet moves up to $4.24 trillion, highest level in 18 months, up $482 billion over the last 6 months,” Bilello said,