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Running head: FED’S RESPONSE TO CORONAVIRUS
Op-Ed: Fed’s Response to Coronavirus
FED’S RESPONSE TO CORONA VIRUS
Should the Fed Respond to the Coronavirus?
To a great extent, the coronavirus epidemic continues to threaten not only the United
States economy but also the larger global economy. The global economic activity has reached
lowest level in the recent past with adverse economic effects of the corona pandemic. The
possibility of an economic recession in the near future stands not to be ruled out considering the
fact that most businesses have ceased their operations. This is expected to worsen with the
foreseeable lockdown, and aggregate demand continues to deteriorate with the declining
purchasing power. Fed is one of the major economic regulators and hence a major player to be
largely relied on in keeping the economy afloat in the middle of such crises. The financial system
to which Fed controls is a major economic lifeline that Fed must save from the current
pandemic-caused shocks to ensure the maintenance of economic stability. In this case, therefore,
the Fed should respond to the coronavirus because it is a major economic ...
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