Fed vows to buy as much debt as necessary to support economy

For some reason, I must be reading too much into this…. this is now beginning to smell.


The Federal Reserve on Monday announced it would buy as much government-backed debt as necessary to support the economy through the COVID-19 crisis. For the first time in history, the U.S. central bank also said it would buy corporate debt to make sure struggling companies have access to the money they need to stay afloat.

The Fed efforts to keep credit flowing through fallout from the pandemic now exceeds what it did to help the economy recover from the 2008 financial crisis.

“The coronavirus pandemic is causing tremendous hardship across the United States and around the world,” the Fed said in a statement. “Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.”

AP
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