Cumberland's Kotok Finds the Fed's Emergency Rate Cut Worrisome

The transcript discusses the Federal Reserve's emergency rate cut and the concerns it raises about the economic situation. It highlights the influence of global events, such as the virus outbreak, on the Fed's decision-making process. The discussion also covers the Fed's reaction function, the expansion of its balance sheet, and the potential economic impact. The challenges faced by the central bank in buffering economic contraction and the expected increase in deficit expansion are also addressed.

In what ways does the speaker suggest the central bank could buffer the economic impact?

What is the significance of the projected deficit expansion mentioned in the text?