Where will Fed’s support for equities end?

Sam Kerr

June 16, 2020 03:00 pm

(180717) -- WASHINGTON, July 17, 2018 (Xinhua) -- U.S. Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee, on Capitol Hill in Washington D.C., the United States, on July 17, 2018. Jerome Powell said on Tuesday that for now, the best way forward for the central bank is to keep gradually raising the federal funds rate. (Xinhua/Liu Jie) | Liu Jie/Xinhua News Agency/PA Images

The US Federal Reserve deployed another tool from its arsenal yesterday: the ability to purchase individual corporate bonds. There is a strong belief in the markets that the central bank is acting, at least in part, to support equity markets, so why doesn’t it do so openly?

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Sam Kerr