Fed cuts half point in emergency move amid spreading virus

As long as other countries do business in USD and keep buying US debt, the party keeps going.

With fiat, you can spend as much as the combined purchasing power of all your citizens through money printing.

When you’re the reserve currency, that pool is extended to the purchasing power of many many countries.

That’s probably why, from a strategic POV, the US must remain the largest military force and continue to police the world.

With dollar hegemony, the US might even introduce new ways (like MMT) of sipping purchasing power of participants.

The Fed funds rate doesn't really do much to near-term mortgage rates (at least it hasn't to me, as a consumer). The market dip in Treasuries (openly traded) depressed yields which drove mortgage rates much lower before the fed acted at all. Lower rates allows buyers to purchase a lot more home than they otherwise would have which has a good chance of being higher than any rise in the market price - especially for less frothy areas.

If you're talking about prices going up as institutional investors buy up property obviously disregard the above as it's a different dynamic.

But even mr. Draghi might agree that right now the ECB is pretty powerless, given that it's rates are already below zero.

Fiscal responses (having the government spend actual money, either on things like infrastructure it by just handing it out to the population, which will then largely spend that money as they see fit) rather than monetary policy responses (reduce rates and hope that people will borrow more) are known to work well in most cases.

The Corona virus situation is slightly different than the financial mess of 2008 because it involves actual potential supply constraints. This means that a higher rate of inflation may have to be accepted temporarily. But inflation has arguably been far too low for far too long anyway...