- 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.