Mnuchin Gutting The Fed’s Corporate Bailout Power?
3 years ago
The Fed will lose their ability to directly purchase corporate and municipal bonds at the end of the year. This clearly will put downward pressure on bond prices, but it is unclear to me whether the effect will be strong enough to substantially destabilize the bond market before January 20th when all election issues should be settled and the president and congress can get back to their regular business of bailing out corporate America.
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