The Covid-19 outbreak has affected the communities all over the world and has affected the worldwide economic activity. The financial conditions have been affected globally. As per the present economic data, the US economy is facing a challenging period.
According to the official Press Release by the Board of Governors of the Federal Reserve System, the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. To reassure about this development, the committee has decided to lower the target range for federal funds to 0 to ¼ percent. The Committee expects to maintain this target until they are confident that the economy is achieving maximum employment and stability in price. According to the Federal Reserve, this action will help them provide support to economic activity with stronger labor market conditions, and inflation.
It is true that the Federal Government is trying to stabilize the monetary system after the financial crash but there are influencers and market stalwarts who look at the conditions differently and have a different outlook on how to stabilize the economy.
CEO of Binance, Changpeng Zhao shared his views through a series of tweets posted today.
CZ shared some other ways to combat the economic crisis. He believes that crashing the rate cut to zero is not going to work. According to him, not printing money, catching hold of the failed executives who are responsible, strongly investigating monetary frauds and etc., can work.
He further tweeted that the government officials have to be given better compensation, but also have to be accepting when a drawback like this happens in the time of crisis.
CZ doesn’t aim to blame anyone for the market crash in particular, but still strongly believes that the monetary system doesn’t work as perfectly as it should. He believes that the use of Bitcoin can definitely fix this.
Not just CZ but other leaders of the crypto community are not really happy about the Federal Reserve’s decision.
Anthony Pompliano, the co-founder at Morgan Creek Digital, also lashed out on Fed for bailing out hedge funds, banks, and giant financial corporations. He tweeted saying that the financial corporations have “literally unlimited liquidity.”
The Fed is working on bailing out hedge funds, banks, & corporations.
Literally said they have unlimited liquidity.
That is because they can just edit the numbers in their electronic database at will.
Unfortunately, I’ve never seen them do that for the people’s bank accounts.
— Pomp 🌪 (@APompliano) March 15, 2020
The FOMC’s next meeting is scheduled for next month on 28th and 29th April. As of now, Federal Reserve hasn’t released its quarterly schedule for the upcoming economic projects which can give an idea about where the market rate can go further.