5/9 How Would the Fed Buy Stocks? The Fed’s ordinary purchase authority is limited to Treasuries and government-backed mortgage securities — it cannot buy corporate bonds or equities outright. In both 2008 and 2020, it worked around that limit the same way: the Fed set up a Special Purpose Vehicl

5/9 How Would the Fed Buy Stocks? The Fed’s ordinary purchase authority is limited to Treasuries and government-backed mortgage securities — it cannot buy corporate bonds or equities outright. In both 2008 and 2020, it worked around that limit the same way: the Fed set up a Special Purpose Vehicl

4/9 So, why not treat the stock market the same way? If the Fed can buy mortgage-backed securities to help homeowners, why not U.S. stocks? After all, the stock market is larger than the economy.