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How The Coronavirus Crisis Pushed The Fed Into Truly Uncharted Territory

Apr 23, 2020

Nathan Tankus, research director at the Modern Money Network, sheds light on the Federal Reserve's unprecedented actions during the coronavirus crisis. He discusses how the Fed has expanded its role beyond traditional measures to directly support municipal authorities and the corporate debt market. Tankus explains the implications of these interventions and their historical context, stressing the importance of financial literacy and oversight in navigating this new economic landscape. The conversation also delves into ethical considerations surrounding corporate bailouts.

45:20

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Episode guests

Nathan Tankus

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Episode notes

Intro

2min

Understanding Economic Crises and Monetary Policy

14min

The Fed's Unprecedented Interventions

6min

Navigating Corporate Responsibility and Credit Risk in Crisis Management

3min

Navigating Legal Boundaries: The Fed's Use of Special Purpose Vehicles

4min

Federal Reserve Responses to the Coronavirus Crisis

17min

Wrapping Up with Social Connections and Support Services

3min

The fate of the economy remains extremely unclear. However there is little doubt that the Fed has taken dramatic steps to arrest the crisis. Not only has Jerome Powell’s Federal Reserve dusted off old tools that were designed during the last crisis, it’s engaged in unconventional actions, such as lending directly to municipal authorities, as well as becoming a player in the market for private sector corporate debt. Amid this crisis, Nathan Tankus, a researcher at the Modern Money Network, has emerged as one of the foremost experts on what the Fed has done, and what it’s capable of doing, through his widely read newsletter. He joined us on this episode to explain and contextualize the historic nature of the Fed’s actions so far.

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