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Central banks’ coronavirus bailouts are distorting the market, but do they even realise it?

When the US Federal Reserve announced on last Wednesday that it was “committed to using its full range of tools to support the US economy in this challenging time”, the market read it as the Fed would do whatever it takes to support the United States in its worst pandemic and economic recession since the 1930s.Since the beginning of this year, the Fed has expanded its balance sheet by an unprecedented US$3 trillion, to just under US$7 trillion, by buying US Treasuries, mortgage securities and…

Read the original article at South China Morning Post

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