https://www.msn.com/en-us/money/mark...?ocid=msedgdhp
But the Fed is about to embark on something it has never done before: Directly buying corporate bonds, directly buying debt from cities and states, and making “Main Street” loans to midsize firms. These are far more complex and politically sensitive moves than buying U.S. Treasury bonds, but Fed leaders argue they are necessary to keep plenty of credit flowing at a time when so many businesses, households and local governments desperately need loans.
“Slightly cheaper credit doesn’t make any difference if stores are closed,” said Ian Shepherdson of Pantheon Macroeconomics.
Another fear is that the Fed could trigger an ugly spell of high inflation like what the United States experienced in the 1970s after the central bank arguably kept interest rates too low.
“It does beg the question of how far Washington can go in issuing and monetizing debt before everyone pays a price in terms of higher interest rates, higher taxes and higher inflation,” said David Kelly, chief global strategist at JPMorgan Funds.
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