Fed Cuts Could Mean Trillions Added to Balance Sheet: Economist Piegza

The video discusses the performance of corporations with weak balance sheets and the Federal Reserve's (Fed) stance on corporate debt levels. The Fed does not currently view corporate debt as a major concern and is focused on maintaining economic stability. The discussion highlights the Fed's limited room for additional stimulus in the current easing cycle, with interest rates near the zero lower bound. The Fed may need to rely on non-traditional measures, such as expanding its balance sheet, to support the economy if it weakens further.

How does the current easing cycle of the Federal Reserve compare to past cycles in terms of stimulus?

What potential actions might the Federal Reserve take if the economy experiences extreme weakness?