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Photo illustration: Sarah Grillo/Axios. Photo: Scott Olson/Getty Images

While President Trump has waffled on coronavirus and the Senate and House of Representatives have bickered over how best to deploy a fiscal response, the Federal Reserve has unleashed an onslaught of monetary policy power.

What happened: Having fired the full arsenal it deployed during the 2007–2009 global financial crisis in a matter of weeks, the Fed has committed to trillions in buying. And, it now promises unlimited purchases of U.S. government debt and mortgage-backed securities as well as municipal and corporate bond buys.

Why it matters: Central banks had surpassed the traditional confines of monetary policy long before the virus outbreak.

  • The Fed's already unprecedented action is far from finished and the world will now get to see just how much central banks can do to help the economy.

Where it stands: "The Fed knows they need to be aggressive, need to be creative and need to do everything in their power to keep the economy going through this really difficult time," Michelle Meyer, head of U.S. economics at Bank of America, tells Axios.

  • Meyer points out that even with the Fed's balance sheet at a record $4.7 trillion as of March 18, that is still less than 25% of U.S. GDP. The Bank of Japan, by contrast, holds assets worth more than 100% of the country's GDP on its balance sheet, including corporate bonds and ETFs.
  • "So there’s capacity to buy," she adds.

The big picture: Having already stepped in for the country's politicians, the Fed on Monday greenlit vehicles to provide aid to employers, municipalities and households, and is expected to soon announce a Main Street Business Lending Program for small and medium-sized businesses.

  • "This is another essential step forward in providing a floor for risk markets but, unfortunately, it is not sufficient,” Seema Shah, chief strategist at Principal Global Investors, says in a note to clients.

Reality check: "The Fed is acting as the plumber," Oxford Economics' chief U.S. economist Gregory Daco tells Axios. "It’s ensuring the pipes don’t burst, but there is little it can do to control the water pressure."

Go deeper: Coronavirus has left us with nothing good to say about the economy

Go deeper

Scoop: Gina Haspel threatened to resign over plan to install Kash Patel as CIA deputy

CIA Director Gina Haspel. Photo: Win McNamee/Getty Images

CIA Director Gina Haspel threatened to resign in early December after President Trump cooked up a hasty plan to install loyalist Kash Patel, a former aide to Rep. Devin Nunes (R-Calif.), as her deputy, according to three senior administration officials with direct knowledge of the matter.

Why it matters: The revelation stunned national security officials and almost blew up the leadership of the world's most powerful spy agency. Only a series of coincidences — and last minute interventions from Vice President Mike Pence and White House counsel Pat Cipollone — stopped it.

Updated 4 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Coronavirus deaths reach 4,000 per day as hospitals remain in crisis mode — CDC warns highly transmissible coronavirus variant could become dominant in U.S. in March.
  2. Politics: Biden says, "We will manage the hell out of" vaccine distribution — Biden taps ex-FDA chief to lead Operation Warp Speed amid rollout of COVID plan — Widow of GOP congressman-elect who died of COVID-19 will run to fill his seat.
  3. Vaccine: Battling Black mistrust of the vaccines"Pharmacy deserts" could become vaccine deserts — Instacart to give $25 to shoppers who get vaccine.
  4. Economy: Unemployment filings explode againFed chair: No interest rate hike coming any time soon —  Inflation rose more than expected in December.
  5. World: WHO team arrives in China to investigate pandemic origins.

John Weaver, Lincoln Project co-founder, acknowledges “inappropriate” messages

John Weaver aboard John McCain's campaign plane in February 2000. Photo: Robert Schmidt/AFP via Getty Images)

John Weaver, a veteran Republican operative who co-founded the Lincoln Project, declared in a statement to Axios on Friday that he sent “inappropriate,” sexually charged messages to multiple men.

  • “To the men I made uncomfortable through my messages that I viewed as consensual mutual conversations at the time: I am truly sorry. They were inappropriate and it was because of my failings that this discomfort was brought on you,” Weaver said.
  • “The truth is that I'm gay,” he added. “And that I have a wife and two kids who I love. My inability to reconcile those two truths has led to this agonizing place.”