The Federal Reserve is expanding its asset purchases to include municipal bonds

CNBC ^ | March 20, 2020 | Jeff Cox

[C19fan]

The Federal Reserve said Friday it would extend its asset purchase program into short-term municipal bonds. Thus far, the central bank has limited its efforts to Treasurys and mortgage-backed securities in an effort to keep liquidty flowing through the system and to stabilize credit markets.

However, continued disruption in the markets for state and local government debt promoted the Fed to take further action in its efforts to combat coronavirus effects. The market for munis this week has all but collapsed, with few willing to step in and buy the government debt in the uncertainty of the current climate.

[CodeToad]

Of course. Write a fake amount of “money” in the federal reserve computer system, then “buy” something tangible with it.

Federal government money laundering. Been going on since the Federal Reserve System was established in 1913. This is why the founding fathers wanted nothing but gold and silver to back our currency so the feds couldn’t manipulate our personal wealth by diluting it with money laundering.

[NorseViking]

Helicopter money again.

[blackdog]

Orange County × 100,000.

[wny]

why doesn't he Fed simply Quantitatively Ease (create out of thin air)

$1,000,000,000,000,000,000,000,000,000,000

and distribute a few mil to everyone?

[babble-on]

What is the exact reason they should NOT do this?

The experience of the 2008 GFC was that the heavy interventions averted a depression, and that the US Treasury (taxpayers) turned a profit on the interventions.

[teevolt]

Full blown helicopter now. We entered this century with a Fed created tech crisis, moved it to a Fed created housing crisis, and now a Fed created bond crisis. My guess is we’ll get the currency crisis sometime this decade.

[faithhopecharity]

the fed buying corporate or bank debt can push some (a fraction of the amount) money into circulation.
the fed buying muni debt really can’t