NEW YORK, NY Mar. 3 (DPI) – Readers across news sites expressed dismay and disgust over today’s 1/2 point rate cut by the Federal Reserve, as the US central bank tried to step in to bolster economic prospects amid the coronavirus outbreak.
A nearly universal view – shared by many experts – is that the Fed is wasting what little ammunition it has left to address a problem that hasn’t fully emerged, and that the Fed should not have rolled over in the face of political pressure. The Fed is “out of ammo for the next real crisis now,” as one WSJ poster put it.
What’s more, readers focused on the public health crisis stemming from the coronavirus outbreak, rather than on the virus’ global economic impact. Readers acknowledge that an economic slowdown is inevitable from the supply shock that the virus outbreak is causing, but the first priority should be on arresting the outbreak worldwide.
Most popular WSJ.com comments:
What an unbelievably stupid move. I am stunned that Powell deferred to this. This won’t fill one cruise ship. it won’t reschedule one meeting and it won’t make people want to fly to China or Italy. Why not fiscal policy?? Now we are down to the nub. A country that appears to be failing. That’s what zero rates mean. Out of ammo for the next real crisis now. Very stupid.
Why are we stripping ourselves of ammo to combat a real recession? Total waste to cut rates just because of investor panic around an unresolved disease. Should have waited for it develop further before deeming that the economy needed a boost…
And from the NY Times today:
Is this going to lower the 22% interest rate on my MasterCard? Is this going to make my family safer from the virus? How is this going to help people like me who aren’t rich, who don’t own stocks, who struggle to get by and are afraid for their family? :
When someone I know gets the virus I’ll take a copy of this article to their bedside as a cure. Just kidding, of course. No. This is just a cynical way to make money off of a medical emergency. Color me disgusted.