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J.P. COVID impact on markets: research update
By Michael Cembales
The first table itemizes monetary and fiscal stimulus unleashed by the Federal Reserve and other Central Banks in recent weeks, measured as Central Bank liquidity provisions, new fiscal stimulus programs and rate cuts.
For context, new fiscal stimulus and total fiscal deficits in the US are roughly double the levels seen in 2008-2009, and the US fiscal deficit we project for 2020 of 15%-18% is only matched by deficits seen at the height of WWII in 1942-1943.
The amount of stimulus and support from the Fed for markets cannot be fully captured by the table above. To do that, one would have to add up all of the Fed’s Asset Purchase commitments, Direct Lending programs and Guarantee/Backstop programs as well: that amounts to around $8 trillion. See page 7 for details on the ECB.
Source: JP Morgan
