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April 3, 2020

Fathom’s Chart of the Day 03.04.2020: Fed action creates dangerous fault lines in assets

by Fathom Consulting.

The past four weeks saw the largest ever liquidity injection from the Fed as its balance sheet swelled by close to $1.5 trillion thanks to the resumption of asset purchases and additional QE operations. One potential, unintended impact from such global policy stimulus is a bifurcation between assets that can take advantage of this support and those that cannot. Such market dislocations have a tendency to become progressively more extreme, testing policymakers’ resoluteness in their ability and willingness to address them.

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