The <a href="https://www.cryptoknowmics.com/crypto/united-states-federal-reserve-system-explores-cbdc-and-its-risks/">United States Federal Reserve</a> has injected $9.8 million into the crumbling economy, but banks say it won’t suffice and they need more.

Repurchase options, commonly known as “repos” on March 5 alone was a total of $89 Billion, according to the New York Fed’s<a href="https://apps.newyorkfed.org/markets/autorates/tomo-results-display?SHOWMORE=TRUE&amp;startDate=01/01/2000&amp;enddate=01/01/2000"> website</a>.

Repos purpose is to provide short term liquidity to lenders. It’s a practice which is sometimes compared to magically manoeuvre fiat money out of thin air. The issuing comes in response to the crippling American economy, and it failed not to get overwhelmed by it. The coronavirus has impacted the economy significantly, and the situation is the worst seen since the financial crisis of 2008. Even the strategic rate cut to breathe some life back into the economy fell flat on the ground horribly.

The liquidity rampage the federal Reserve went on was equivalent to half of the mined Bitcoin supply (9.8 million). The Wall Street Journal on Friday stated that Fed’s own limit had been stretched in recent weeks given the demand for repo cash.
<h2>Bitcoin Community Mocks The US Feds For Its Toolkit to Deal With Adversity</h2>
<img class="alignnone wp-image-160587 size-full" src="https://www.cryptoknowmics.com/crypto/wp-content/uploads/2020/02/Bitcoin-may-be-the-norm.jpg" alt="Bitcoin Community Mocks The US Feds" width="892" height="500" />

The Bitcoin biggies were quick to rub it into the face of the fiat currency fanatics and boasted about bitcoin. Morgan Creek Digital co-founder Anthony Pompliano ridiculed the central bank stating:
<blockquote> “Cut interest rates and print money. These are the tools of central banks”</blockquote>
The <a href="https://www.cryptoknowmics.com/news/bitcoin-sees-surge-in-hashing-power-after-outbreak-of-coronavirus">coronavirus outbreak</a> has exposed the vulnerability of the current financial system and the instability associated with traditional markets. The volatility of stocks is almost at an all-time high, as the oil consumption nosedives. Rate reduction has not really fulfilled any purpose and is undoubtedly not sufficient to curb the damage.

Incidents like these push the case of bitcoin. World of Bitcoin has limited supply, needs to the stock exchange to function, secluded, and away from external influence makes it more alluring in the eyes of people.

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 	<li><a href="https://www.cryptoknowmics.com/crypto/feds-analyze-bitcoin-transactions-to-take-down-child-porn-site/">Feds Analyze Bitcoin Transactions to Take Down Child Porn Site</a></li>
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United States Federal Reserve Pumps $9.8 Million Into Economy

United State Federal Reserve has funneled almost half of bitcoin's total supply, after the reduction in rate didn't help their cause.

Zain is a fervid fan of bitcoin and has been meticulously covering the field for a fair amount of time now. An aficionado of Spider man, Liverpool and Slim Shady.

United States Federal Reserve Pumps $9.8 Million Into Economy

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