The Fed will print whatever it takes – what does that mean for markets?

Jerome Powell, chair of the US Federal Reserve, has vowed to keep pumping money into the economy for as long as it takes to get America back on its feet. John Stepek explains what that means for your investments.

Screen grab of Jerome Powell © US Federal Reserve
Jay Powell: will do whatever he can for as long as it takes.
(Image credit: Screen grab of Jerome Powell © US Federal Reserve)

The Federal Reserve – the US central bank – gave its latest verdict on markets, monetary policy, and the economy last night. Some had been a tiny little bit concerned that the surprisingly good jobs data from last month would have blunted the Fed’s commitment to loose monetary policy.

Not a bit of it. Here’s Fed boss Jerome Powell, disabusing anyone of that notion: “We’re not even thinking about raising rates. We are strongly committed to using our tools to do whatever we can for as long as it takes."

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.