The Problem With Pinning All Your Market Hopes on Rate Cuts
- U.S. stocks jumped after news of Group-of-Seven teleconference
- Monetary easing unlikely to prevent economic impact: Bleakley
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The cure for the coronavirus is unlikely to come from a central bank, but equities accustomed to 11 years of Federal Reserve support are acting like it might.
U.S. stocks rallied the most in 14 months on bets that Group of Seven central bankers will coordinate a policy response to the outbreak that is threatening to derail the global economy. Anyone who’s watched the Fed jump start markets with an array of policy prescriptions over the years can be forgiven for pushing equities higher Monday. But a growing cohort worry the boost, while warranted, will be short-lived.