Mar 25, 2020
Federal Reserve To Guarantee Liquidity
Federal Reserve is working to secure liquidity and Congress expected to pass a $2 trillion economic stimulus bill. Several stocks could be very attractive if the bill will pass. The big banks in America could benefit from the stimulus plan as this huge amount of money pass-through bank accounts for businesses to compensate for the economic damage caused by the virus.
Fed’s actions and the expected stimulus from Congress will probably not change much the bank’s earnings results, but it could help the U.S. economy move through the coronavirus crisis. Wells Fargo, J.P. Morgan, Bank of America, Citigroup, GS and more could gain from the FED’s bailout. Still, it’s unclear if this could be a sustainable turning point for the financial markets and bring stabilization, or maybe the sellers will use it again as a high point to sell.
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