United States

How coronavirus is helping the Fed handle Trump impeachment

In supermarkets it’s called a BOGO — buy one, get one free. Well, the Federal Reserve finds itself in a BOGO situation right now. For months, the Fed has been pumping money like crazy into the markets through repurchase agreements, or “repos.” These repos, which are short-term credit infusions, do pretty much what the now-discredited quantitative easing did when the liquidity pump was running overtime after the Great Recession. This is where the BOGO comes in. Out of the public’s earshot, the Fed has two immediate worries — the coronavirus that’s causing havoc with economies in Asia, especially China, and the impeachment trial in Washington. The virus is seriously crimping business in the Far East, while DC’s impeachm ...