But others noted the Fed was just reacting to signs the situation in Europe and the U.S. was only getting worse. “The Fed’s actions were very bold and it does appear to have spooked the markets,” said Nate Thooft, head of global asset allocation at Manulife Investment Management. “Markets were going to be spooked anyway due to the scale of the shutdowns across the U.S. and sobering implications of a US$20 trillion dollar economy that is about to grind down to a crawl,” said Ma Yung-yu, chief investment strategist at BMO Wealth Management. “Also, developments in Europe are raising the prospect that what was just a week ago considered ‘worst case’ might be closer to ‘base case’ for the U.S.,” Ma said. “Big picture, the Fed’s actions are all positive.”

Source: The Standard March 16, 2020 06:22 UTC