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What it would take for the Fed to start buying stocks

davfordavfor
in Other Investing
The realm of what is talked about seriously is expanding......
Should market conditions deteriorate, the Federal Reserve could venture into the stock market, several market analysts and economists said.

Such a move likely would come in the form of a big ETF that tracks major market indexes.

Congressional approval would be needed to take such a step.

The Fed already has launched an historically aggressive use of its various powers.

“We’ve seen the Fed show that they’re willing and able to do whatever it takes to make sure the markets are opening in an efficient manner. They’re taking whatever steps they can,” said Lindsey Bell, chief investment strategist at Ally Invest. “That would be new territory for the Fed, not that they’re scared of new territory.”
https://cnbc.com/2020/03/29/what-it-would-take-for-the-fed-to-start-buying-stocks-during-coronavirus-crisis.html

Comments

  • Old_Skeet
    edited April 2020
    Who says that they have not been buying stocks or stock futures? After all, they bought shares of GM & Chrysler (perhaps others) back in 2007 & 2008. And, there has been no audit of their balance sheet. So, we really do not know what the Fed's own.
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