Kevin Doran, chief investment officer at AJ Bell, comments on the Federal Reserve’s commitment to unlimited purchases of US Treasuries and agency mortgage-backed securities:
“After the ECB and Bank of England rolled out their Quantitative Easing cannons last week, the Federal Reserve have opted to go nuclear with the promise to unleash uncapped QE. Impressive in another era, but essentially still trench warfare in a world where the enemy has gone airborne.
“Providing liquidity to markets is helpful, but shoring up asset prices isn’t what’s called for this time around. What people are looking for is certainty over either their income or expenses. Rishi Sunak’s furlough funding scheme is a step in the right direction, but until these kind of policies themselves go viral, the panic will continue.”