Fed to the Rescue: Unprecedented Scope, Stretched Authority

When it comes to responding to the coronavirus outbreak in the U.S., the Federal Reserve has emerged as one of the most active institutions at the national level. Its bold and timely interventions have halted a monetary breakdown that would have guaranteed a second Great Depression. And its continuing efforts to avert a vicious cycle of debt defaults are helping to address a sudden economic stop that has made a deep and lasting recession all but inevitable. Unfortunately, the Fed has repeatedly had to scramble and stretch its authority because it was not designed to address the current crisis. In … Read more