Fed could purchase $750 billion of corporate debt in new facilities
Fed clears staff to purchase investment- and non-investment-grade debt and ETFs
The Federal Reserve is set to launch two corporate credit programmes over the coming days, which could see the central bank purchase up to $750 billion in debt and exchange-traded funds (ETFs).
The move marks an escalation in the central bank’s policy action designed to contain the financial market fallout of the coronavirus. But stepping into corporate debt markets has not come without criticism, as observers argue the Fed is supporting risky areas of the marketplace.
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