Not sure what you mean by they won’t come in again till the next low. They have already came in, and is continuously printing money right now. It’s not like a one time deal, it’s a continuous thing. What you are seeing in the stock market is from this effect.
Also, doesn’t matter if covid gets worse, as long as businesses are not forced to shutdown, economy will be fine and impact will be localized, as shown in last week’s US employment numbers. Governments are unlikely to shutdown businesses anymore no matter how bad covid gets.
Future action la, has the fed really come up with new measures every few weeks to prop up the economy. Problem is them coming in previously or continuing current measures has already been priced in.
When lockdown you think businesses can stay open? When hospitals fill up, every single country in the world has to lockdown. States which are filling up are California, Texas, Florida which is 33% of the US economy.
Retail spending will be muted if unemployment remains high, as more will tighten their belt in view of the uncertain economic climate. Tourism will probably be dead for another half year.
Based on these, how many businesses will call it a day? Then all these close shop, bank also gonna get hit by massive bad debts. The feds is not in the business of saving every single company in US. This is what we'll see in 3-6 months.
