The Federal Reserve’s actions during the COVID-19 crisis were extensive and went beyond just purchasing government securities.
The Federal Reserve took unprecedented measures to support the economy. By the end of 2020, the Fed had purchased approximately $3.5 trillion in government securities. This was part of a broader effort that included various lending programs and other financial support mechanisms.
the Federal Reserve’s actions during the COVID-19 crisis were extensive and went beyond just purchasing government securities. In addition to the $3.5 trillion in government securities, the Fed also implemented several other measures:
- Corporate Bond Purchases: The Fed bought corporate bonds, including those from companies like Apple and Verizon, to stabilize the corporate debt market. The total purchases in this category were part of a broader program that could have reached up to $750 billion, though actual purchases were significantly lower.
- Lending Programs: Various lending facilities were established to support households, employers, financial market participants, and state and local governments. These included the Paycheck Protection Program Liquidity Facility (PPPLF), the Main Street Lending Program, and the Municipal Liquidity Facility.
- Quantitative Easing (QE): The Fed’s balance sheet expanded significantly due to QE, which included purchasing mortgage-backed securities (MBS) and other assets. By the end of 2020, the total amount of QE was around $4.5 trillion.
- Total Economic Support: Combining all these measures, the total amount of money created and injected into the economy was estimated to be around $13 trillion.
Printing $6 trillion only gave you 3 years of a fake "booming" economy fueled by inflation.
Now we're already in a massive recession and you guys want to vote the same people in? pic.twitter.com/c19esq4FS4
— Financelot (@FinanceLancelot) September 18, 2024
Ladies and gentlemen, I present to you the most overvalued market in history.
"Let's cut interest rates to stimulate the economy"😂
The Buffett indicator pic.twitter.com/b8ckcBa3qs
— The Great Martis (@great_martis) September 17, 2024
The pain of inflation is seen EVERYWHERE.
Has your salary increased by 30-40% since 2021?
If not you’re getting crushed by inflation.
People need to WAKE UP and not accept this. pic.twitter.com/7mBSTYmVsI
— QE Infinity (@StealthQE4) September 18, 2024
Last time the Fed was this far behind the curve was 2007. Gold rose 3X from $700/oz to $1,900/oz over the next four years. Chillax and enjoy the ride! pic.twitter.com/JFYbzWUb2n
— Garrett Goggin, CFA & CMT (@GarrettGoggin) September 17, 2024
Blue = Foreign Central Bank holdings of USTs.
Red = Total US Federal Debt.
Mind the gap (with QE, bank regulations, MMF regulations, pension tax benefits, enticing US retail to buy, etc.) pic.twitter.com/hm22uOrZbj
— Luke Gromen (@LukeGromen) September 17, 2024
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