El-Erian blasts Fed, saying it should've been 'laser-focused' on market failures and cut rates later

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Mohamed El-Erian said Monday the Fed wasted a large part of its monetary policy arsenal to fight the economic fallout of the coronavirus by doing things backwards.

despite the Fed's announcement of a massive monetary stimulus campaign and an interest rate cut to zero. The exchange-traded fund that tracks the S&P 500, which has no mechanism to curb downside, was off more than 9%.

"We should have been more laser-like focused on areas of market failures ... and then followed up with more general interest rate cuts when that can have an impact," El-Erian argued, stressing that lowering rates and making loans cheaper won't change the spending behavior of consumers who are not leaving their homes.down to 2008 financial-crisis levels of 0% to 0.25%. Rates during and after the crisis stayed near zero for seven years before the first hike in 2015.

In another action from the financial-crisis playbook, the Fed launched a massive $700 billion quantitative easing program as well as multiple other measures aimed at keeping liquidity flowing through the financial system.

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Easy to second guess.

As Lee Corso once said about Arkansas, the Fed “shot their wad”. That was hilarious, this is not. They should have NEVER been cutting while things were good. This disaster goes right back to Trump’s greed. He blew the market bubble up as much as he could and now 💥

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Market sell-off after Fed's Sunday rate cut is 'totally understandable,' Scaramucci says'What's happening right now (is) we're starting to price in the reduction in earnings for 2020 and the possibility now of a recession,' said Anthony Scaramucci, founder and co-managing partner of Skybridge Capital. The fed moved too late, unfortunately I agree with Trump on this one. Late and not enough money. Ppl spent all their money on food supplies then needed an ER Cash Stash thats all. Walmart stock is UP CVS stock is UP Etc. just different sectors
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