U.S. Fed Reserve announces a slew of new QE measures to help financial system recover, Bitcoin supporters turning ultra-bullish

In its latest announcement, the Fed said it would launch an undetermined amount of its bond purchase program to support the market to operate smoothly. Besides, the Central Bank of America also implemented many other measures to help businesses and people. Now Bitcoin bulls on Twitter are going wild with joy, sharing their ultra-optimistic sentiments.

The Fed launched an unlimited quantitative easing program to rescue the economy

According to CNBC, the US Federal Reserve (Fed) will launch a series of policy programs to help markets operate more effectively in the context of the widespread COVID-19 epidemic. One of the new Fed policies is a commitment to continue the bond purchase program (quantitative easing) in the amount needed to support the market to operate smoothly and to convey effective monetary policy to the broader financial conditions.

This shows that the Fed has turned to a new page in printing money when it pledges to continue to expand the balance sheet as needed, instead of committing to a certain amount. The Fed will also first switch to corporate bonds, buying securities ranked investment in the primary and secondary markets through ETF trading funds.

The latest move comes as the market has seen chaos since the crisis caused by an epidemic, and the market liquidity has dried up.

Peter Boockvar, chief investment officer at Bleakley Advisory Group, said:

“We are now in QE infinity, again.”

Anthony Pompliano posted a reminder that previously, the Fed announced a target of $ 700 bln to be injected into the financial system. Now, the regulator states that they are going to buy an unlimited amount of treasuries and mortgage bonds.

Pompliano said:

A range of other positive support measures

In addition to the unlimited QE package, the Fed also implemented a variety of additional measures, including an unspecified loan program for businesses on Main Street and a guaranteed term loan program. The product used to be used in the 2008 financial crisis.

Besides, there will be an additional $ 300 billion program to support direct credit flows for employers and businesses, and two other programs are also set up to provide credit to major employers.

The Fed also said it would buy mortgaged securities as part of opening up its assets. This move represents an expansion into the field of real estate trade in the acquisition of financial assets by the U.S. central bank.

Other additional measures include the issuance of collaterals secured by student loans, car loans, credit card loans, loans are guaranteed by the Small Business Administration and some other assets.

Besides, the Fed also said it would lower interest rates for its repo operations to 0% from 0.1% previously. Activities are carried out daily to provide short-term liquidity to the banking system.

The above programs are supported by the Ministry of Finance to ensure the Fed is free.

U.S. Treasury Secretary Steven Mnuchin said in a statement:

“We are committed to providing relief for American workers and businesses, particularly small and medium-sized businesses and critical industries that are most impacted by the coronavirus. We will take all necessary steps to support them and protect the U.S. economy.”

Bitcoin bulls are stirring

Crypto Twitter is full of bullish posts from crypto experts who are sharing their optimism regarding the impact of the new QE measures on the Bitcoin price ahead of the halving in less than two months.

Now that the news is going around, Bitcoin has broken through the $ 6,000 level, and crypto traders are offering bullish predictions. Analyst ‘Crypto Michael’ tweeted that BTC is likely heading for $ 6,800.

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