In addition to historically low interest rates, the US Federal Reserve has committed to an open-ended quantitative easing (QE) programme — buying mostly Treasuries and mortgage-backed securities but also, for the first time, corporate bonds of all grades from both the primary and secondary markets as well as through exchange-traded funds, among others.
Central banks are all-in on extreme monetary policies in the face of the severe economic fallout from the Covid-19 pandemic.
Learning from the global financial crisis (GFC), policymakers have reacted very quickly this time around. They have basically reactivated all of the previous emergency measures, and then some.
