The Federal Reserve’s shock interest-rate cut and bond-buying program rippled through global markets on Monday, with S&P 500 Index futures falling by the most allowed and Treasury yields plunging at the start of what promises to be another volatile week.

Early reaction to the Fed moves on Wall Street was mixed. Some said the measures will help stabilize jittery financial markets, while others warned that the central bank’s emergency actions risked adding to investor panic.

There was one refrain from across the spectrum, however: Policy makers the world over will have to roll out more monetary and fiscal stimulus to counter the economic fallout of the worsening coronavirus pandemic.

Here are some of the latest insights:

Blew It
Michael O’Rourke, chief market strategist at JonesTrading:

“They blew it. The Fed panicked and the market is spooked. The S&P 500 registered all time highs less than a month ago and the Fed has expended all its conventional and unconventional tools. The key takeaway will be that they have truly expended all of their ammunition and this is the action of a central bank that is scared.”

Fiscal First
James McCormick, global head of desk strategy at NatWest Markets:

“The fact is global equities are still getting slammed. It shows markets worried more about infection rates and growth and need to see a large fiscal response. Monetary policy will not have the same potency for financial markets -- it is not enough on its own and there isn’t much ammunition left. The theme has been clearly on display in markets since the Fed’s first rate cut two weeks back. But this is not the end of monetary policy, not by a long shot. Fiscal policy announcements will now be watched more closely and discounted more quickly by financial markets.”

Forward Guidance
Roberto Perli, partner at Cornerstone Macro LLC:

“Overall, I believe the package is robust, but it also left something to be desired in some areas, like the unclear forward guidance and the reliance on the heavily stigmatized discount window. Nonetheless, Powell was clear that the Fed reserves the right to use other tools if appropriate.”

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