The Fed’s money-pumping efforts are driving a new economic cycle that’s reminiscent of 2009, Canaccord Genuity says



a bench in front of a building: Kevin Lamarque/Reuters


© Kevin Lamarque/Reuters
Kevin Lamarque/Reuters

  • The Federal Reserve’s liquidity-boosting measures place the economy on track for a 2009-style upswing, Canaccord Genuity analysts said in a Thursday note.
  • Policymakers signaled on Wednesday that the central bank would hold rates near zero through 2023 and maintained asset purchases of at least $120 billion in Treasurys and mortgage-backed securities per month.
  • The purchases spiked excess cash in the financial system, but liquidity has since fallen from its peak.
  • The excess-liquidity trend is “just like” the post-peak reversal seen “as the economy emerged from the 2009 recession,” the analysts said.
  • The Fed’s policy “reinforces our view that we are in the early stages of a new economic and market cycle,” they added.
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The Federal Reserve’s plans for long-lasting aid are on track to drive a 2009-style economic comeback, Canaccord Genuity analysts said Thursday.

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US economy in recession but seeing ‘signs of life’: Fed’s Esther George

Kansas City Federal Reserve President Esther George says the U.S. economy is in a recession now, but we may not have a double-dip downturn.

“I think my forecast is the economy will continue to grow, given the right supports. And so that’s what I’m looking forward to,” she said in an interview with FOX Business.

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George sees a rebound after a historic drop in GDP growth in the second quarter of an estimated 32.9%, as forecasted by the Bureau of Economic Analysis. She sees unemployment getting into high single digits by the end of the year after hitting 10.2% in July.

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