Cue to Buy Bitcoin: Fed and Bank of England Vows to Do ‘Everything’ to Help their Economy Recover
Markets are flying right now. And the central banks are ready to give them even more reason to continue to do so.
We are less than a week into November, and the S&P 500 has already pumped 7.35% as the US dollar struggles, and yields on US Treasury debt securities remain unchanged.
While green is splashed across the markets, the Federal Reserve pledged again to do whatever it can use “full range of tools” to sustain the speed at which the US economy is recovering.
Amidst the uncertainty around the still undecided US presidential election, the Fed kept the loose monetary policy intact — asset purchase and interest rate (near zero) remains unchanged.
Chairman Jerome Powell said the Fed has begun to consider whether it needs to extend the emergency credit facilities beyond their expiration on Dec. 31.
But the Fed chief said the economy is now recovering at a slower speed after being boosted earlier in the year by fiscal aid and re-opening of businesses adding the recent rise in coronavirus infections in the US and abroad was “particularly concerning.”
The same day the Bank of England governor also vowed to do “everything we can” to support the economy amidst the resurgence of Covid-19 cases.
As the central bank announced another £150bn of support, Andrew Bailey said it was important policymakers acted “quickly and strongly.”
However, with new restrictions in England and tighter lockdown rules, a slower and bumpier recovery is expected. “We are here to do everything we can to support the people of this country – and we'll do it and will do it quickly,” said Bailey.
All of this basically, “is code for buy Bitcoin.”