The Fed is going to buy ETFs. What does it mean?
The central bank will use some new tools to help stabilize markets.
www.marketwatch.com
The Federal Reserve on Monday announced a fresh round of stimulus designed to calm markets and buffer the hit to the economy from the coronavirus pandemic. Among other steps, the Fed said it would buy exchange-traded funds that track the corporate bond market, a first for the U.S. central bank.
“This will provide much-needed liquidity to the bond market and to ETFs,” said Todd Rosenbluth, head of ETF and mutual fund research at CFRA.
I don't know. This does not smell good at all.
The Fed has just become a day trader!