On March 6th, Boston Fed President Eric Rosengren said in a speech, “We should allow the central bank to purchase a broader range of securities or assets. Such a policy, however, would require a change in the Federal Reserve Act.”
Since lowering interest rates and introducing more QE may not be enough to keep the economy and stock market from imploding if the virus continues to spread, the Fed may be forced to directly purchase stocks and other assets to prevent a major market downturn. Japan has already engaged in this policy. Ben Bernanke, a past Fed Chairman, also made similar comments after the 2008 Financial Crisis.
The Dow Jones currently remains above its long-term support