Fed Panics: Powell Cuts Rates To Zero, Turns to Printing, Now out of Ammunition

Fed Panics: Powell Cuts Rates To Zero, Turns to Printing, Now out of Ammunition. By Tyler Durden.

With all due respect to Thursday’s massive repo expansion, this is the Fed’s bazooka. It also means that after this, the Fed — which just cut rates to zero and launched QE5 — is now out of ammo, as Powell will have to cut rates to negative next and/or buy stocks outright for further monetary stimulus, something that would require the permission of Congress. And since that is unlikely absent a total collapse in the financial system, we are now down to fiscal stimulus and US politicians acting in a bipartisan fashion.