Quarterly Bulletin Q2 – 2020

In comments made on March 23, Jerome Powell, Chair of the U.S. Federal Reserve (the Fed) suggested that the financial markets would recover in the second quarter. He confirmed that a liquidity shortage was rapidly developing in all sectors of the economy, and he offered his assurance that the Fed would do whatever was necessary, and use every resource imaginable, to fill these gaps as required. That was all it took: a substantial rebound in the second quarter erased much of the historic rout in equity markets during the first quarter.