There has been a lot of discussion lately about if the central bankers or other government agencies should change their monetary strategy during the Corona Crisis. Investors seem to panic and there has been a substantial slump in the stock prices. To me, these questions seem premature. Firstly, we have no idea as to what extent the Corona virus will spread. Furthermore, fed tools like a rate cut have very little noticeable effect in the first few months, it takes a year to feel them. There’s a big chance (but no certainty of course) the Corona virus will be gone within that time. But of course, President Trump puts the Fed under pressure as this is an election year, and for this reason he prefers a booming economy for the next 10 months instead of a flourishing economy later.
In my opinion, the government should help the economical players that are affected in the long term such as the travel companies and others. But I think a better option would be tailor-made solutions for the affected companies/industries instead of a general measure.
Article on which I based my opinion:
Robin Deroeck Finance & The Political world 