Central Bankers Cannot Save The Day This Time

As the Coronaviruscontinues to spread across the world, investors and economists now realise that the initial impact estimates on the global economy were far too optimistic. The risks of a supply shock linked to the disruption of production capacity in China have now been compounded by falling demand as people panic and increasingly decide to stay at home. The recent sharp market sell-off and the resulting tightening in financial conditions have forced the Fed to take pre-emptive action to reassure the market. However, the biggest rate cut in more than a decade and encouraging words from Jerom…

Read More