Saturday, July 12, 2025

Latest

Federal Reserve to Begin Purchasing Direct Corporate Bonds Instead of ETFs

As a means of propping up the coronavirus-stricken US economy, the Federal Reserve introduced two credit facilities back in March that would be focused on the corporate debt market. The first facility would directly purchase bonds from issuers, whilst the other would be concentrated on buying the bonds on the open market – many of which have thus far been ETFs.

Speaking before the House Financial Services Committee on Capitol Hill, Fed chairman Jerome Powell stated that the central bank will now transition towards purchasing individual company debt instead of ETFs. According to Powell, the gradual transition towards individual bond buying would support market functioning as well as liquidity. Once companies are back on track and financial stressors are mitigated, the Fed will ease its monetary support – however, such a recovery could still be far away.

In addition, the Fed has also been met with some criticism regarding its corporate bond buying program. Some of the companies benefiting from the facility have been rated junk or speculative grade, and are thus exposing the Fed, and ultimately taxpayers, to an increased level of risk.

Information for this briefing was found via CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Mergers Set the Stage for Uranium’s Growth Cycle | Forum-Baselode Merger

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Recommended

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

Related News

Broad Markets: Start Asking The Right Questions.

We’re beginning to regret having equipped The Dive’s custom apocalypse bunker in an undisclosed location...

Monday, April 6, 2020, 11:25:10 AM

James Bullard: Fed’s ‘Credibility is on the Line’ if Interest Rates Don’t Increase Quickly

St. Louis Fed President James Bullard has taken another swipe at the central bank’s lethargic...

Monday, February 14, 2022, 03:35:00 PM

Fed Officials Prepared to Hike Rates 75 Basis Points Following Alarming Inflation Print

The Federal Reserve is in a position to hike borrowing costs by more than 50...

Tuesday, June 14, 2022, 12:53:10 PM

Federal Reserve’s FedNow To Launch Later In July

The Federal Reserve said on Wednesday that its fast payment tool FedNow will be available...

Thursday, March 16, 2023, 11:58:00 AM

Morgan Stanley: Fed’s Taper Could be More Detrimental to Stock Markets Than Omicron

It appears that someone is not happy about the Fed’s latest hawkish move to accelerate...

Thursday, December 9, 2021, 04:37:00 PM