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Bernanke says Fed chief Powell ‘got ahead of this,’ and ‘going big’ was right thing to do

Late Fed Chairman Ben Bernanke told CNBC on Wednesday the central bank has acted with appropriate force to help the U.S. conciseness get ahead of the coronavirus and set the stage for a strong rebound once the disease abates.

“I think the Fed has been extremely proactive and Jay Powell and his span have been working really hard and got ahead of this,” he said. They “have shown that they can set up a undamaged bunch of diverse programs that can help us keep the economy functioning during the shutdown period so that when the all-clear is sounded … we’ll see a much improve rebound than we otherwise would.”

Financial markets have been under acute strain in recent weeks and suffer with posted one of the largest sell-offs in modern times. The slide in the S&P 500 and Dow Jones Industrial Average has worsened to more than 30% in brand-new sessions as the coronavirus and measures to contain its spread worry investors that the U.S. could be headed for a recession.

The spike in volatility and pickle equity losses have in turn forced the Federal Reserve to embark on a massive, trillion-dollar easing program to hands ease stressed credit markets. The central bank announced Monday it will purchase corporate bonds and not fair U.S. Treasurys, providing unprecedented support for investment-grade corporate debt.

“I certainly wouldn’t argue that we should, for monetary conservatism reasons, not do everything we need to do to address this problem,” Bernanke said in a “Squawk Box” interview. “Right now, I suppose that going big is right and I think the markets will absorb the Treasurys and the Fed will help keep that superstore working in a smooth way.”

The Fed earlier this week also removed limits on its asset purchases and quantitative easing apportions, saying it will buy securities “in the amounts needed to support smooth market functioning” and declined to put a limit on how much it could obtain.

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