Not wanting to bring a knife to a possible gun fight, the FOMC (Federal Open Market Committee) led by Jerome Powell announced multiple actions in response to Corona and the related shutdowns last night.
FOMC Lowers Rates, Lowers Bank Reserves and Adds Money
On Friday a coalition of private and public groups agreed to begin more testing for the Corona Virus… not surprisingly if you are able to test more, there have been more findings.
Last night the FOMC led by Jerome Powell announced multiple measures to help economic activity:
- Lowering of Short Term Rates
- Lowering of Bank Requirements AND encouraging Banks to lend to businesses, especially small businesses with the extra freed up reserves
- Purchasing of Treasury and Mortgage Securities for Liquidity and lowering of rates
Friday, I mentioned multiple ways to think of the current events… given the above events, here is another example…
- The FOMC did all of this, it must really be bad…
- Not wanting to get behind, the FOMC is taking advanced actions to help stay in front of disruption and possible slowness…
Choice one is easy and likely will show up somewhere in your sights, if it has not already …. again, choice two is the positive, high road choice, and will only likely be seen here today!
Yes, events are making the Spring Break Trip hard to focus on family and friends, but in a strange way, maybe it is good to be out of the office!
Careful what you intake… drama rises to the top!
Rest assured, as you can tell, we have complete remote access…and again, we are a conservative firm by nature!
Have a Great “FOMC No Knife to Gunfight” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth