News & Events

The Weekly Wrap - June 12, 2020

Just as it seemed the worst of the economic downturn and coronavirus was behind us, investors suffered another panic attack this week, sending stock prices to their biggest one-day loss since March 16 on Thursday. While the markets recovered somewhat on Friday, the reasons for the latest investor angst will likely weigh on investors for some time. Ironically, the primary catalyst that sent stock prices soaring over the past 2 ½ months remains firmly in place. At its latest policy meeting this week, the Federal Reserve reiterated its firm commitment to keep interest rates at rock-bottom levels and retain its formidable pump-priming efforts, including purchasing copious amounts of Treasury and agency securities, as far as the eye can see. It also promised to activate and expand emergency lending facilities to keep credit flowing and help jump-start the ailing economy.