Let’s talk about what that means … Back in March of last year, the Fed’s response to the pandemic started with some massive action on a Sunday night, where they slashed rates to zero and started a big bond buying program (Treasurys and mortgages).
The Fed said this afternoon that it will begin selling its portfolio of corporate bonds. Let’s talk about what that means… Back in March of last year, the Fed’s response to the pandemic started with some massive action on a Sunday night, where they slashed rates to zero and started a big bond buying program (Treasurys and mortgages). But they didn’t address the troubled corporate bond market. And that threat was rattling markets and the economy. Stocks were continuing to plunge, and the Fed was losing control of the Treasury market.
